Koç Group Corporate Social Responsibility Report 2011 Content of the Report: www.koc.com.tr [email protected] • Initiatives carried out by Koç Holding; For more detailed information about all our We welcome your feedback, suggestions • Projects and examples of best practices activities, and for updated information and criticisms, for these are the most conducted by the Group Companies beginning January 1st 2012, you may visit valuable tools we use to improve our Arçelik, Aygaz, Ford Otosan, Koç Koç Holding corporate website or those of reporting studies. To contact us, please send Information Technologies Group, Opet, the individual Group Companies and the an e-mail to [email protected] Otokar, Otokoç Otomotiv, Tat, Tofaş, Vehbi Koç Foundation. A PDF version of Koç TürkTraktör, Tüpraş and Yapı Kredi Holding CSR Report is also available on our corporate website. • Joint projects conducted by NGOs supported by the Group, The Vehbi Koç Foundation and affiliated institutions.
Contents:
1 About the Report
2 Message from the Chairman
3 Message from the CEO
4 Koç Group in 2011
6 Governance at Koç
10 Human Rights at Koç
14 Work Environment at Koç
22 Environmentally-Friendly Practices at Koç
32 Ethical Values at Koç
34 Social Development at Koç
44 GRI Index
The Global Compact The Ten Principles of the UN Global Compact
United Nations Global Compact (UNGC) Human Rights consists of 10 principles of human rights, Principle 1: Businesses should support and respect the protection of S.10-13 labor conditions, environment and internationally proclaimed human rights; and anti-corruption. These principles are based Principle 2: Make sure that they are not complicit in human rights abuses. S.10-13 on a guiding perspective for businesses and S.13 organizations in order to achieve further Labor Standards objectives, regarding, particularly, risk Principle 3: Businesses should uphold the freedom of association and the management, efficiency growth, motivation effective recognition of the right to collective bargaining; and fidelity of employees, brand awareness Principle 4: the elimination of all forms of forced and compulsory labor; S.10-21 and opening to new markets. Principle 5: the effective abolition of child labor; and S.10-21 Principle 6: the elimination of discrimination in respect of employment and S.10-21 The Global Compact was initiated by the occupation. United Nations in 2000 and since then has been adopted on a voluntary basis. All Environment S.22-31 efforts to comply with the Principles are Principle 7: Businesses are asked to support a precautionary approach to S.22-31 made public through reports accessible on environmental challenges; the UNGC website Principle 8: Undertake initiatives to promote greater environmental S.22-31 (www.unglobalcompact.org). responsibility; and Principle 9: Encourage the development and diffusion of environmentally According to the UNGC website, currently friendly technologies. the Global Compact has reached more than S.32-33 10,000 participants from 130 countries, Anti-Corruption 6,880 from the business world and 3.150 Principle 10: Businesses should work against corruption in all its forms, from NGOs, trade unions, associations, including extortion and bribery. foundations, local administrations and academic circles. In Turkey, the UNGC has reached 196 participants and a local network organization has been established. About the Report
Koç Holding
Enhancing the quality of life through our guidance methodology for our future * According to the information acquired from GRI operations is a central objective of Koç reporting practices. Online Reporting Database. Source: Group Companies. We believe that to reach www.globalreporting.org this goal, our responsibility to ensure social Koç Group Sustainability Performance and economic development and to protect Evaluation and Reporting System, which we ** “Koç Information Technologies Group” doesn’t and preserve of the environment is as initiated last year, provides a performance represent a legal entity, but a common name for, Koç important as providing products and evaluation infrastructure for this year’s Group IT Companies, namely KoçSistem, Callus, services of the highest quality. We identify studies. During the year, we have improved Bilkom, Promena, Katron, Koç Bilgi ve Savunma this philosophy with the personal motto of this system through expert and user Teknolojileri. Within this report, all performance and our founder, Vehbi Koç, “I live and prosper feedbacks; than improved the system in application information disclosed regarding Koç with my country” and consider this to be the terms of user-experience regarding content Information Technologies Group consisted of shared guiding principle for our way of doing and IT infrastructure, through information data and practices of these 6 companies. business. meetings. We aim to continue improvement efforts for more progress in this area. The continuous growth and development of Koç Group over the last 85 years are Koç Group, the largest private sector characterized by the ability to think the employer owns many of Turkey’s largest and unthinkable, to see the invisible, to reach a most respected industrial companies. It stage never before envisioned; to add an touches the lives of millions of stakeholders innovative, creative and unique dimension of various types due to the extent of its to everything we do; and to make every domain and strength of its impact. Thus as value we have created permanent. Thus we establish content basis and over the years, we have achieved what had communication means, we take into been considered impossible: the account the spectrum of our stakeholders. development of globally distinctive products. The intended audience for this report Besides that, we have been leaders in encompasses a wide range of stakeholder establishing the best working environment, groups, including employees, customers, creating the most environmental-friendly shareholders, investors, NGOs and products and production conditions, professional organizations. founding centers of excellence in the areas of healthcare, education, culture and arts This report covers Koç Holding activities and serving large segments of the community. projects carried out in Turkey between January 1st 2011 and December 31st 2011. This In compliance with the principles of year, our report covers practices and transparency and accountability, we believe performances of Group Companies Arçelik, it is essential to share a constructive Aygaz, Ford Otosan, Koç Information communication environment with all Technologies Group** Companies, Opet, stakeholders and to respond to their Otokar, Otokoç Otomotiv, Tat, Tofaş, Tüpraş, expectations and opinions while conducting TürkTraktör and Yapı Kredi in social, our activities. For this reason, since 2006 we economic and environmental areas. Unless have been issuing Koç Group Corporate there is a statement to the contrary, apart Social Responsibility Reports in order to from the sections which present the general communicate our understanding and profile of Koç Holding, the performance of performance regarding social, economic all these companies is included in the data and environmental issues through a regarding sustainability performance comprehensive and reliable framework. indicators. Although the report Each year, we seek to improve our practice encompasses information on corporate by incorporating new ideas and guidelines. structure, projects and performance results regarding Vehbi Koç Foundation, unless Our previous report, published in April 2011, there is a statement to the contrary, its was the first GRI approved holding company performance is not included in the CSR report in Turkey*. As we did last year, consolidated quantitative performance data, we followed UN Global Compact COP tables and charts presented throughout the reporting procedures and Global Reporting report. The reporting content that we have Initiative G3 Reporting Framework, which is generated represents 85.4% of Group a globally acknowledged standard on employees and 91% of combined revenue. corporate social responsibility reporting regarding B level application requirements. In light of the positive results and responses we received, we intend to follow the same Koç Group Corporate Social Responsibility Report 2011
Message from the Chairman
Mustafa V. Koç
Dear Stakeholders, out our strategic considerations through work environment where human rights are evaluating and reporting our practices and respected and which set an example; Koç Holding - one of the driving forces of their outcomes. In the coming years, Koç contributing to increased performance development and the largest private sector Holding will continue to pioneer practices across many indicators Group Companies employer of Turkey - has a management that improve its sustainability understanding have also contributed to the development of style that can be best defined by such terms and studies. the communities in which they operate, in as creativity, innovation, productivity and the areas of education, healthcare, sports, institutionalization. Thanks to these As a result of the robust structure that we culture and arts and environment, reflecting characteristics, throughout our history of have established, Koç Group Companies our corporate culture. more than 85 years, we have worked with improved their performance during 2011, determination to go far beyond what is compared to the previous year, in all In 2011, I am proud to report that we easily seen, perceived and carried out and sustainability performance areas particularly improved our performance in corporate thus we have built on our success day by in terms of environmental performance. sustainability, thus fulfilling our responsibility day. These qualities underlie the fact that we Through the careful and dedicated efforts of to our stakeholders. I would like to express have continuously improved our Koç Group employees, we have continued our gratitude to all stakeholders – performance even during recent years to register significant improvements in particularly to our employees, customers, which are considered economically to be energy efficiency, reduction of GHG investors, suppliers and business partners – one of the most turbulent periods in recent emissions and resource efficiency by for supporting us in order to obtain these history. Today Koç Holding is amongst the employing cutting-edge technologies. As achievements. world’s largest corporations. We own many one of the European companies allocating of Turkey’s leading companies, globally the largest amount of resources for R&D Respectfully, respected brands and thousands of studies, in 2011 Koç Group continued to products, enhancing the quality of life for develop the most advanced consumers. Moreover, we employ more environmentally-friendly product and than 80,000 people whose creativity and service options in our sectors in order to hard work are the basis of our success. For enhance life standards of our consumers. us, sustainable growth through lasting value is not only a business goal, but a Koç Holding regards the climate change Mustafa V. Koç management tradition. According to the phenomenon as the most important issue Koç Holding A.Ş. words of our founder Vehbi Koç, “I live and that that urgently needs efficient solutions Chairman prosper with my country”, we believe that addressing the various environmental, our most fundamental duty is to maintain economic and social risks associated with it. sustainable growth for Koç Group and to Organizations that take a proactive and contribute to the sustainable development leading role in combating climate change by of the communities that we live in, through analyzing the situation from a the value we generate. For this reason, multi-dimensional perspective, as required, sustainable development in a wide will be able to seize many new opportunities perspective from our operations to all our through their capacity to steer paradigm impact area is our goal; we mobilize all our change that the climate change will impose talent and capacity in order to achieve this. on economic life. Koç Holding and Group Companies, in their sectors and markets, Since its foundation, Koç Group has play a leading role in combating climate embraced the concept of corporate change. Our Companies have obtained sustainability, the importance of which has significant results in reducing GHG gradually increased over time; and has emissions from operations and products earnestly managed the social, during their life cycle. environmental, economic and ethical aspects of its activities and interests. Our A common will representing all social corporate governance practices which serve stakeholders is a prerequisite to success in as a role model for the Turkish business combating the climate change. During 2011, world are a significant indicator of our memberships of various Group Companies commitment to maintain a transparent and in Climate Platform of Turkey and their accountable management structure. Our representation of the Turkish business world adherence to the UN Global Compact, in international initiatives trying to find which we signed in 2006, is a keystone in solutions to climate change indicate the the corporate sustainability management serious, determined and influential stand practices of Koç Group Companies. Koç Koç Group has taken against climate Group Sustainability Performance and change. Reporting System, established in 2010, sits around an analytical framework that serves As in the past, during 2011 Koç Group as the main structure that we use for laying Companies have provided a safe and fair Message from the Chairman 2 Koç Group Corporate Social Responsibility Report 2011 Koç Topluluğu Kurumsal Sosyal Sorumluluk Raporu 2011 CEO Mesajı 3
Message from the CEO
Turgay Durak
Distinguished Stakeholders, We have achieved significant gains through the efforts made by Group Companies to Throughout the last 15 years, the rapid improve environmental and operational transformation of the world economy into a efficiency. During last year, increases in global structure has increasingly intertwined production were accompanied with with social, economic and environmental reductions in energy consumption, by 3.37 challenges. As global actors lagged behind million GJ and greenhouse gas emissions by in addressing the new global economic and 348.6 thousand tons CO2e. financial phenomena a major global economic crisis erupted. Despite the We obtained good results through the adverse consequences of challenging efforts of our Companies regarding period, we believe that positive results will resource consumption efficiency and emerge from the process of discussing and recycling. The Koç Group Recycling Project redefining the main components of the new initiated in 2010 resulted in the recycling of economic order on a global scale and the 1,600 tons of paper, 52 tons of glass, 32.3 assignment of new roles to economic actors. tons of metal and 217 tons of plastic waste in 2011. As a result of these activities, our A major question facing economic actors, Companies substantially reduced their including businesses, is how to provide a fast environmental impact as well as growing world population with the life contributing to a large degree to financial standards they deserve without performance through the efficiency gains compromising future generations’ social, they achieved. economic and physical life conditions. Another central concern is how to reach a Environmental-friendly product level of global development level necessary development activities for our Companies to support this immense production make up the majority of R&D studies environment. While seeking viable solutions conducted in 2011 with a total budget of TL for these challenges, we must not ignore the 490 million. As a result, our Companies major role that climate change, one of the have developed tens of new products and most important issues of our days, holds services which provide the greenest options within this emerging portrait. Koç Group, in their categories and reduced impacts of plays an important role in the world existing products; while giving them a economy and is ready to respond to the competitive edge. demands of this new era through its long-established corporate values; its Last year was a year when Group governance framework structured by Companies again gave their full-fledged commitment to the principles of support to community activities; 248 accountability, transparency, participation charitable sponsorships and other projects and superior business ethics; its visionary, were supported, 89,140 saplings were creative and innovative organization; and its planted. A total of 22,499 Group employees determination to play a pioneering role in volunteered in these activities. the sustainable development of the communities in which it operates. We thank all our stakeholders particularly Group employees, dealers, customers, Koç Group has promptly perceived this shareholders and suppliers for their support transformation thanks to its experience, which made 2011, our 85th year such a robust risk provisions and solid corporate success. governance; and promptly improved corporate policies, strategies and systems in Respectfully, line with the requirements of this new era maintaining a trend of sustainable growth during this challenging term.
Since the signing of the UN Global Compact in 2006, we have been strengthening our corporate sustainability model and Turgay Durak supported this effort in 2011 by improving the Koç Holding A.Ş. sustainability management system as well as CEO publishing our Koç Group Climate Change Strategy. Our efforts in all progress areas have yielded success in terms of operational and financial performance. Message from the CEO 3 Koç Group Corporate Social Responsibility Report 2011
Koç Group in 2011
Koç Group is the largest industrial conglomerate of Turkey. According to Istanbul Chamber of Industry’s “Turkey’s Top 500 Industrial Enterprises 2010” listing, five of the top ten companies are Koç Group Companies.
Energy Other
Main Companies Main Companies Tüpraş* Tat Konserve* 11% of Turkey’s Total Aygaz* Düzey Opet Koçtaş Mogaz Setur Export Entek Setur Marinaları Koç Group has generated a combined financial revenue Eltek Mares* equivalent to 9% of Turkey’s national income. Aygaz Doğalgaz Divan Akpa KoçSistem Demir Export Bilkom RMK Marine International Alliances AES Mont Blanc Holdings B.V. International Alliances Fuchs Petrolub AG B&Q Kagome Sumitomo 56 22,499 Automotive Kaneka Seeds EMPLOYEES Number of Facilities Number of Employees Main Companies Certified with Volunteered for Ford Otosan* * Listed companies OHSAS 18001 Social Projects Tofaş* TürkTraktör* Otokar* Otokoç Otomotiv 62 203.5 International Alliances TL MILLION Ford Motor Co. Number of Environmental Fiat Auto S.p.A Facilities Certified Protection Expenditures Case New Holland with ISO 14001 and Investments Consumer Durables
Main Companies Arçelik* Arçelik-LG Klima 248 58,640 International Alliances LG Electronics (Klimada) Number of Charitable, Saplings Planted for Sponsorships and Reforestation Banking and Insurance Other Social Projects
Main Companies Yapı Kredi Bankası A.Ş.* Yapı Kredi Finansal Kiralama* Yapı Kredi Sigorta* Yapı Kredi Yatırım Ortaklığı* Yapı Kredi Koray* Yapı Kredi Emeklilik Yapı Kredi Faktoring Yapı Kredi Yatırım Yapı Kredi Portföy Yönetimi UniCredit Menkul Değerler Koçfinans
International Alliances UniCredit Koç Group in 2011 Koç
4 One of the World’s Largest 250 Companies
In 28 countries
80,987 employees
67,837.3 man x hours Environmental Trainings Provided to Employees
One of the World’s Largest 250 Koç Holding Consolidated Financial Summary Companies in Fortune 500 List Values (TL Million) 31-Dec-10 31-Dec-11 Change (%) Koç Holding is the only Turkish corporation in Consolidated Revenues 53,812 75,741 41 “Fortune Global 500” list. Koç Holding advanced its ranking to the largest 250 Gross Profit 9,192 11,160 21 companies in 2011. EBITDA 5,066 6,525 29
Koç Group is the largest industrial Operating Profit 4,102 5,490 34 conglomerate of Turkey. According to Istanbul Profit Before Tax 3,886 4,707 21 Chamber of Industry’s “Turkey’s Top 500 Industrial Enterprises 2010” listing, five of the Net Income 3,138 3,850 23 top ten companies are Koç Group Companies. Minority Interest 1,404 1,726 23 Equity Holders of the Parent 1,734 2,124 22 World’s Total Assets 81,143 98,621 22 nd Total Equity 20,978 23,271 11 562 Largest R&D Investor Shareholders’ Equity 12,574 13,897 11 Koç Holding was listed among the world’s top companies by R&D investment according to the“EU Industrial R&D Investment Scoreboard” for 6 consecutive years rising to 562nd place Koç Group’s Patent Portfolio Koç Group’s R&D Investments in 2011. Of the 4 Turkish companies on the list, (Cumulated Quantity) (TL Million) 3 are Koç Group Companies. Increase in patent application in last 4 years Koç Holding was listed among the top 23 2,500 2,294 new global challengers on Boston 68% 600 Consulting Group’s “2011 BCG Global 2,087 Challengers: Companies on the Move: 2,000 490 Rising Stars from Rapidly Developing 1,833 500 Economies Are Reshaping Global 1,620 Industries” Report. 400 1,500 349 1,366 Koç Holding was rated as “one of the 300 international companies with the most 1,000 competitive power in China” by China International Institute of Multinational 200 Corporations (CIIMC). 500 100 Four of the top ten companies in Turkish Exporters’ Assembly’s “Top 1,000 Exporters 0 0 of Turkey” listing in 2010 are Koç Group 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Companies. All Companies
CO2 20.5% 3.37 348.6 million GJ THOUSAND TONS Percentage of Recycled Water in Total Energy Saved Total GHG* Emission Total Water Usage Reduction
* Greenhouse Gas Group in 2011 Koç 5 Koç Group Corporate Social Responsibility Report 2011
Governance at Koç
Corporate Governance at Koç Holding, with professionals successful and Committee is comprised of the Chairman of reputable in their respective areas on the the Committee and non-executive international arena, in its board of directors members. As an integral part of our Group culture, as independent members, has been one of principles such as integrity, respectability, the pioneering Turkish companies in this Corporate Governance Committee ethical behavior, compliance with laws and respect, whereby in our board of directors Corporate Governance Committee monitors regulations, constitute the backbone for other than the Chief Executive Officer (CEO), the compliance of the Company to efficient and robust corporate governance none of the members assume active duties Corporate Governance Principles, reviews structures of Koç Holding and the Group in execution. In 2011, of the 14 Board of the reasons put forward for not Companies. Essence of institutionalization Directors Members, 4 met the independence implementing certain principles and makes was perceived, way before taking its current criteria specified under CMB principles, recommendations to the Board of Directors significance as a management approach whereas 1 possessed criteria other than the with respect to improvement measures. At condition for office term. Koç Holding’s present, there are 2 members in the thanks to the visionary perspective of our Board of Directors Chairmanship and CEO committee, one of which is the chairman. founder Vehbi Koç; thus became essential functions are being conducted by different The Committee meets two times annually goal for Group Companies. For the aforesaid individuals. and more frequently whenever so required. reason, Koç Holding has become one of the Duties assigned to Nomination Committee, first companies attempting voluntary efforts For Board Membership positions of Koç Risk Provision Committee and Remuneration in order to reach ultimate standards in Holding, it is selected at all times individuals Committee in accordance with CMB’s corporate governance. For instance, Koç equipped with an ultimate level of Corporate Governance Principles are Holding is one of the first Turkish companies knowledge and skills, who are well-qualified, performed and carried out by the Corporate keeping independent members in its board with a particular past experience. Governance Committee. Biographies of our Board Members are of directors, correlating the remuneration of announced to the general public on our its senior management with sustainable Web Site as well as in the annual report. In Sustainability Management at Koç financial and operational performance. our Company there are committees Exhibiting a transparent, fair, responsible and established with the purpose of ensuring that Koç Group’s sustainability management is accountable management approach, and the Board performs its duties and referring basically on its corporate displaying full compliance with regulatory responsibilities in a sound and healthy governance structure, business ethics and rules regarding organizational structure, manner. social responsibility culture, as well as United policies and processes are amongst Nations Global Compact, signed in 2006. It is principles that Koç Holding and Group Management Committee obliged to abide by such 10 principles set The purpose of the Management Committee Companies are required to adhere to at all forth under the said agreement, under is to support the Board for discharging its times. pillars of working conditions, human rights, duties and responsibilities in a sound and the environment, and anti-corruption, the healthy manner and for undertaking its policies and strategies set forth by Koç Koç Holding and Group Companies strictly activities as fast as the business life requires. attached to institutionalization as a Holding, over all operational geographies of Management Committee comprises of five the entire Group Companies. Group prerequisite of Group values, are duly members, namely Koç Holding Honorary adopting such “Corporate Governance Companies are monitoring and reporting the Chairman, Koç Holding Chairman, two Vice performance in these areas, and conducting Principles” issued by the Capital Market Chairmen and the CEO. Board (CMB), implementing the same to a continuous improvement focused studies. major extent, and are striving to enhance Audit Committee Strategic Planning such level of implementation. As a part of Audit Committee is performing duties these works, such Corporate Governance All Koç Group Companies, under strategic specified under Capital Market Legislations planning process they realize every year, Compliance Report that we prepare every with respect to audit committee. In this year in order to share the developments with conduct comprehensive evaluations for the context, it is dealing with our Company’s minimum 5-years period ahead, with respect respect to our compliance status is accounting system, disclosure of the presented to our stakeholders together with to market conditions, possible regulatory financial data to the public, independent changes, environmental circumstances, our annual report. Of our Group Companies auditing of the same, as well as surveillance traded on the stock exchange, Arçelik, elements of competition, customer of the functioning and effectiveness of the expectations, technological innovations, Aygaz, Otokar, Tofaş, TürkTraktör, Tüpraş and internal control system of the company. The Yapı Kredi Bank are receiving corporate channels of distribution, as well as Committee meets no less than four times characteristics of products and services. In governance ratings at regular intervals, and annually and more frequently whenever so as a consequence of the high grades parallel to the vision of the company, required. The responsibility of the Audit strategies and targets with respect to the received, are being traded under Corporate Committee, jointly with the company Governance Index. status determined are specified, and the management consists of diligently carrying investment plans as well as financial analyses out internal as well as external audits alike, Board of Directors in order to attain such targets are prepared. and ensuring that records, procedures and Group Companies present such plans they Board of Directors structure of Koç Holding is reporting are in compliance with the relevant in harmony with such Corporate prepare to the CEO and the relevant Group laws, rules and regulations, and further to Presidents in the Strategic Planning
Governance at Koç Governance Principles set forth by CMB. Koç the principles of CMB and IFRS. Audit meetings held every year. 6 Koç Group Corporate Social Responsibility Report 2011
Board of Directors
Management Corporate Governance Audit Committee Committee Committee
Audit Group
CEO
Formal Corporate Defense Affairs and Commu- Chief Energy Industry, Tourism, Secretary Media nications Human Banking Durable Automative Food and Legal CFO and Goods Group Other General Relations and Resources Group Automative Retail Advisor Insurance Group Group Coordina- External and tionship Affairs IT Group
personnel regulations published by the environmental issues. “Environmental Risk Management Companies, principles with respect to such Council“, established upon participation of Studies on risk analysis and management of matters like social rights of the employees, the Group Companies, is involved with Koç Holding are conducted under the working conditions, occupational health and activities regarding implementation of leadership of Presidency of Finance, in safety are specified, these are governed by policies and strategies as well as diffusion of cooperation with other Presidencies. By the systems and procedures established, the the same in the Companies. With Respect to means of meeting and reporting activities implementation as well as results of Koç Group Environmental Policy and periodically, risks that are probable to be performance attained are followed-up at Visions, environmental issues are subject to encountered by Koç Holding are inquired the Company and Holding levels. Human target distribution process in every Group under the main titles of financial risks, rights, primarily right to association, are Company. Environmental audits are carried strategic risks, operational risks and legal secured under policies and procedures out at specific intervals and by assigning risks, and are subjected to a comprehensive regulated pursuant to the national environmental targets set in accordance and detailed assessment. legislations in practice as well as with the policies and strategies to international conventions, preemptively the Companies’ senior managers essence Quality and Management Systems relevant provisions under United Nations ascribed to this matter is further Koç Group Companies carry out their Global Compact, and within framework of emphasized. activities by adhering robust management the activities of the Group Companies, systems. Therefore, they attach great discrimination, child labor, forced and Sustainability Performance Management importance to excellence models and compulsory labor practices are avoided. Maintaining corporate sustainability at Koç system standardization, and they keep Group Companies expect their suppliers Group Companies is the main target of Koç following current approaches. and business partners to meet similar Holding. In parallel to such goal, we have operational standards by realizing started to monitor on an objective To strengthen management structures, follow-ups, thereby contribute to the methodology basis, our managerial besides commonly accepted attainment of the aforesaid conditions within approaches developed in the respective methodologies, Group Companies include scope of their field of impact. Under Group areas of social, economic, and sector specific systems and standards to Companies, human resources policies and environmental responsibility, through and their management systems, and they processes are managed by units with by means of Koç Group Sustainability maintain system reliability by periodical adequate expertise, whereby organs are Performance Assessment and Reporting external audits. Commonly accepted constituted with the representation of System that we put into practice in year management system standards amongst employees, primarily in the field of 2010. Through the feedbacks we received in Group Companies are ISO 9001 Quality occupational health and safety. the initial year of implementation, in 2011, we Management System, ISO 14001 have improved the system in order to Environmental Management System and Koç Holding Code of Ethics and Business enhance user experience; we organized OHSAS 18001 Occupational Health and Conduct, published in 2010, regulating the user acknowledgment activities with respect Safety System standards. In customer relations of the employees with the to contents and IT infrastructure, and complaints management processes ISO customers, the state, shareholders, prepared a user’s manual to facilitate the 10002 and in laboratory quality competitors, suppliers, agents, authorized follow-up of the context of performance management ISO 17025 systems standards dealers and services, is binding for all Group assessment. By including Group Companies’ are followed. Besides those, various Companies. With this regard under all of the Audit Department representatives into the managerial efficiency and product Companies, Code of Conduct Boards have performance assessment and reporting compliance standards and methodologies been established in order to audit breaches process, we have made data approval varying according to sectoral characters are and to ensure compliance. processes more efficient. By means of the followed. Most of the Group Companies are second period user feedbacks received, we following EFQM and 6 Sigma excellence Koç Holding and Group Companies, are targeting to develop and improve Koç methodologies. regarding their marketing and brand Group Sustainability Performance communication, advertising and promotion Assessment and Reporting System in the Management of Social and Economic Issues activities, pursue follow-up motives based coming term as well. As we believe that human resources are our on the concepts of Leadership, Optimism, most valuable asset, Group Companies Solidarity and Value Creation, which are the provide employees with safe and fair four integral values of the Koç brand. For workplaces where human dignity remain at these efforts, Companies have duly adopted the forefront; human rights are maintained; the principles of acting in an ethical, honest, the Professional development of employees socially responsible and decent manner, are supported, and equal opportunities for avoiding any misleading. their development are provided. Human resources policies and strategies set forth by Management of Environmental Issues Koç Holding are shaped and monitored by Koç Group has generated an environmental the Group Companies through and by policy, vision with respect to the means of customizations made in environment as well as a Climate Change accordance with the characteristics of the Strategy that are providing guidance to all of sectors they are operating in. Under such the Group Companies regarding Governance at Koç
*Performance data related to OHSAS 18001 Occupational Health and Safety Management System can be reached at Human Rights at Koç section. 7 Koç Group Corporate Social Responsibility Report 2011
Ford Otosan and TürkTraktör Employees
Our Stakeholders the following link: in the widest scoped final consumer survey realized in Turkey, conducted in over 20 Koç Group has adopted as a managerial www.koc.com.tr/en-us/Investor_Relations/Fi different sectors. 26 brands owned by 11 Koç principle within framework of its approach nancialStatementsStatistics/Web_Casts/Pag Group Companies and 103 competitor concerning sustainability, to generate a es/Web_Casts.aspx brands are included in the survey. Results of constructive ambient of communication with such survey conducted through those individuals and groups that have an Through our General Assembly meetings approximately 40,000 face-to-face impact on the behavior and attitudes being open to all stakeholders, data interviews made in 47 cities best regarding economic, social and provided in detail on our website, our representing Turkey’s demographics, are environmental aspects of its activities, or comprehensive annual reports, press being shared with top and mid-managers of who are liable to be influenced from. In this releases and our practices regarding Koç Holding and Group Companies. context, corporate stakeholders of Koç transparency focused public disclosure Holding and the Group Companies are policy, it is aimed to keep informed not only Group Companies are conducting defined and identified through impact the shareholders, but all other stakeholders. continuous improvement activities in order assessment. Due to its affiliations, Koç to further improve customer satisfaction and Holding is in interaction with a broad range Major information, changes in management loyalty levels; carrying out communication of stakeholders. Major stakeholder groups of and press releases are issued on intranet studies through various channels open for our organization are shareholders, portal that is open to the access of Group easy access of customers such as call companies, employees, agencies and employees, critical announcements as well centers. Performance achieved as a result of dealers, customers, civil society as messages of the Holding’s senior these activities is monitored through various organizations and public agencies. The management are being transmitted and practices like customer polls, face-to-face fundamental principles in identifying conveyed to all employees via e-mail. interviews, and secret customer corporate stakeholders with which to Furthermore, in order to enhance applications. develop cooperative relations are: honesty, communication with our employees, a respectability, ethical behavior, and periodic internal magazine also followed by Opet’s Journey to Excellence compliance with laws and regulations. In public audience, namely “Bizden Haberler” - Opet, the fuel sector leader for six addition to all of these principles, the News From Us - is being published. consecutive years according to Turkish primary criteria that are considered with Customer Satisfaction Index describes the regard to cooperative ventures and business Group Companies are organizing wide position it has attained with the motto to be developed are their sustainability, the range of meetings in the course of the year “Journey to Excellence”. Customer extent of innovation and creativity, the with both the dealers as well as the satisfaction improvement works are potential for creating a multiplier effect and suppliers, and thereby providing for mutual supported by training of the dealers’ added value in the social arena. Stakeholder exchange of opinion. Studies are made on employees and service development engagement activities include all practices the proposals derived as a result of these activities, measured through applications with respect to one-way as well as two-way meetings. Besides, Koç Holding Chairman, like Honorary Inspector and secret customer feedback methods, mutual discussions, CEO and senior managers attend to practices. Besides traditional customer bilateral as well as multi-lateral “Anadolu Buluşmaları” - Anatolian communication channels, Opet customers engagements, project-based partnerships Rendezvous – meetings launched for are able to transmit their suggestions, and such similar engagements. bringing Group Companies with their expectations and complaints to the dealers together in order to generate new company’s managers via innovative Department of Investor Relations responds ideas; hence, the dealers are kept informed channels such as Full message SMS to the inquiries coming from any existing about the current developments within the application, dealer kiosks, mobile device and potential stakeholders, verbally, in Group, and their first-hand opinions are applications and Ambassadors of Excellence writing or via e-mail according to the received. Hotline through which Honorary Inspectors method of receiving such inquiries. The can convey their inspection results and questions received are predominantly Targets regarding dealer and customer recommendations on 7/24 basis. At Opet related to the operations of the Companies, satisfaction are reflected over the Customer Service Call Center, 98% of their shareholding status as well as plans performance targets of the companies’ incoming calls are responded. with respect to the future. Further, on the management. Whereas in monitoring of the day when the quarterly financial results are performance, satisfaction survey results are As a result of brand based customer loyalty announced, by arranging an online used. Moving from the essence of the index survey carried out in year 2011, in broadcast, a presentation is made to the relationship between white goods category, Arçelik brand investors and analysts; questions raised by company-dealer-customer, satisfaction of exhibited a performance of 80%, and Beko the same are answered with due the dealers from their affiliated companies brand 82%, thereby succeeding to attain a participation of the Senior Management; are being monitored and followed-up. performance over average performance and podcasts and minutes of meetings Dealer Satisfaction Survey, eighth of which recorded in Turkey. Whereas in the category together with the records of the questions carried out in year 2011 by an independent of LCD/Plasma Television, Arçelik and Beko asked and the answers given are published research company, is covering about 5,600 brands exhibited a performance of 82%, on the Koç Holding website. You may access dealers of the Group Companies in 81 cities above average performance in the sector to the data provided in these meetings, throughout Turkey. Whereas Customer and Turkey in general. Arçelik brand Satisfaction Survey carried out since 2003 is reached the best performance in the air
Governance at Koç transcripts of the questions conveyed from 8 7 Number of Group Companies listed in ISE Corporate Governance Index 98.5%
Tüpraş' overall appreciation level in 2011 Most Successfull Koç Employees Rewarding Ceremony Opet conditioners category by reaching a seeking solutions to common problems take customer loyalty figure of 87%. a major part amongst stakeholder engagement practices. Koç Holding and Koç The brand Fiat, manufactured by Tofaş Group Companies are members to various obtained 74 points out of 100 in the major NGOs such as TÜSİAD (Turkish customer satisfaction index survey carried Industrialists and Businessmen Association), out in year 2011 under leadership of KalDer. YASED (International Investors Association), Tüpraş by taking the overall appreciation TİSK (Turkish Employer Unions level to 98.5% in year 2011, attained a better Confederation), MESS (Metal Commodity performance compared to the previous year Industrialists Union), TÜYİD (New Investor as well as its competitors. Relations Association), İTO (Istanbul Chamber of Commerce), DEİK (Foreign Koç Holding is in close communication with Economic Relations Council), TURKTRADE NGOs as well as public agencies for (Turkish Foreign Trade Association), providing solutions to social problems. assuming active duties in the board of Meetings are being held by the CSR directors of the same. Koç Holding is coordination office, with NGOs operating in likewise being represented in the Board of the fields of education, healthcare, Directors of Sustainable Development environment, and culture-arts; ideas and Association that it became a member to in experiences are being shared in year 2011. conferences as well as workshops; and cooperation means are being developed. Other than above mentioned NGOs, Koç Koç Holding kept its support to Turkish Red Group Companies are holding Crescent Organization under the For My memberships before the Chambers of Country Project during year 2011 while Industry and Commerce, Export Associations ongoing cooperation with the Ministry of as well as TOBB (Turkish Union of Chambers National Education regarding vocational and and Bourses), including various other technical training has been continued since associations and initiatives in their sector. 2006. Koç Group is either actively participating or chairing several Committees and Work A Day In A Branch Groups established within framework of the Every year, since 2008, executives working activities of the aforesaid NGOs. in Yapı Kredi Headquarters spend one day in a branch. The basic purpose of this is to enable executives to observe branch activities in the field, and assess these by specifying the areas for improvement. In the course of such visits, branch employees can convey their opinions, suggestions and complaints directly to their managers. Through this program 125 Yapı Kredi executives visited 123 branches in 20 cities.
Amongst other basic matters conveyed to Koç Holding by its social stakeholders are individual as well as corporate support, sponsorship, scholarship and cooperation demands. Such issues are evaluated according to their respective areas by either Koç Holding Corporate Communication Directorate or Vehbi Koç Foundation, focused around the existing means for support and future plans, and the respective requests are replied either as affirmative or otherwise.
Acting under a common perspective with entities such as NGOs, universities, sector and international initiatives in social, economic and environmental issues; Governance at Koç 9 Koç Group Corporate Social Responsibility Report 2011
Human Rights at Koç
"I hope that countries and people will build closer relationships with each other and generations after us will be living peacefully in a prosperous world.”” Our Founder Vehbi Koç
Koç Group places great importance on the Unless required due to reasons related to hazards. As a result of these practices protection of internationally proclaimed the nature of the job, such as the risk preventive measures are maintained; human rights, promoting them in every entailed by the job, employee safety or legal employees are subject to trainings in order business process and raising the respect obligations, there is no different process to raise a common awareness. shown to human rights. In line with this, carried out directly or indirectly due to human rights are a critical element in all our biological reasons in formulation, practice Among the 74 facilities* that are owned by activities. As in other areas, it is important for and termination of employment contracts the companies in the reporting scope, 56 us to do what has not been done and to be a and relevant conditions. are certified with OHSAS 18001 pioneer in the development of respect for “Occupational Health and Safety human rights. Our sensitivity towards the protection of Management System.” As of 2011, 75% of our human rights requires both the Group facilities are certified with OHSAS 18001. In adherence with its concept of human Companies and the suppliers to comply with rights, Koç Group acts with respect for the relevant subjects. As a result of this In order to contribute realization of efficient human rights principles as determined by understanding, in Koç Group neither child considerations within Occupational Health national regulations and international labor nor forced/compulsory labor is and Safety Committees in which health and treaties and does not permit human rights employed. safety processes are evaluated and areas of violations at its workplaces. As Koç Group, improvement are determined, feedbacks we work to extend the practices that comply We support the importance given to these and opinions are received from our with human rights for all our stakeholders in practices with the principle found in the employees and union representatives. the value-chain that we have created and article 3.8.2 of the Koç Group Code of particularly for our employees. We Conduct which states, “Acting in accordance * Yapı Kredi’s operational sites are not continuously work to develop this with the principles specified in the United included to the calculation scope. awareness. Nations Global Compact, and being an example of corporate citizenship with our One of the most important aspects of employees, dealers, suppliers and protecting and supporting human rights is authorized service centers.” Written “anti-discrimination.” Koç Group does not commitments are obtained from suppliers practice any discrimination based on and compliance with this issue is strictly language, ethnicity, gender, political view, monitored. philosophical view, religion, denomination or on any other matters in business Occupational processes and business relations. The Group Health and Safety at Koç shows respect for diversity in these matters. There is no discrimination in the recruitment The most important determinant of the process as specified by the Labor Law; sustainability of our job and our most candidates are recruited for according to important asset is our human resources. For their competencies and qualifications. In the this reason, Koç Group gives great same vein, there is no discrimination in the importance to continuous improvement on remuneration or performance evaluation occupational health and safety; and processes. Relevant evaluations are made in development of workplace conditions. For a fair system that considers competencies, this purpose, Occupational Health and performances and responsibilities. Safety Coordination Board has been established for monitoring occupational The most important criterion for health and safety practices, mainstreaming determining the salary levels is the best practices and for revision studies. employee’s duties and the responsibilities. The salaries and other financial benefits of Besides Occupational Health and Safety union member employees are specified in Coordination Board of the Group, the Collective Bargaining Agreement signed Occupational Health and Safety Committees at the conclusion of collective bargaining have been established in industrial conducted with the unions that employees corporations affiliated with Koç Group. In the adhere to. The compensation levels of non periodical meetings, Committees review union member employees are evaluated company practices. Through these practices with a system taking into consideration the and supervision, health and safety of Group difficulty of the job being performed, the employees are ensured. level of knowledge and skill used in the performance of the job and the Group Companies follow a proactive responsibilities that are assumed. In all these approach regarding occupational health practices, fair and competitive opportunities and safety, conduct risk assessment studies are provided to our employees when in order to prevent possible occupational compared to current labor market. Human Rights at Koç 10 Koç Group Corporate Social Responsibility Report 2011
56 2,514,194 37,400 MANxHOUR
NumberofNumberof facilitiesfacilities certifiedcertified Total amount of trainings Total number of people wwithith OOHSASHSAS 1800180011 given to employees received vocational training
The structure of the Occupational Health and Safety Committees that facilitate the monitoring suggestion/improvement system in the of the relevant programs and make recommendations in this regard is provided below: company and these suggestions are rewarded at the end of the year.
GROUP COMPANIES Number of Active Number of Employee Total Number of Active In Koç Information Technologies Group, OHS Committees Representatives Working in OHS Committee OHS Committees Members periodical medical examination practices are carried out after the first medical Arçelik 10 28 136 examinations upon recruitment. Audio Aygaz 3 3 27 examinations are maintained once a year for the employees working with headsets. Ford Otosan 4 5 99 Eye screening and ear-nose-throat examinations are held once a year. Opet 4 12 53 Employees who work in lead base soldering, Otokar 1 5 14 are examined every three months and all other employees are examined once a year Otokoç Otomotiv 21 21 172 by the company doctors. Tat 11 19 67 During the reporting period, employees Tofaş 9 9 95 have provided with various healthcare services such as vaccinations against flu, Tüpraş 5 9 97 Hepatitis B, HPV viruses; audio tests, TürkTraktör 1 4 22 ear-nose-throat examinations, eye screening and blood work. Yapı Kredi 0 0 0
Koç Information 2 10 24 All new recruits who will work at the Opet Technologies Group Headquarters are requested to provide health reports. Employees, who will be working in heavy and dangerous duty, are requested to provide health reports In Arçelik, all new recruits are subject to recruitment, flu vaccines, eye screening, indicating that they are “eligible to work in medical examinations; all employees have lung x-ray, function tests and porter heavy and dangerous duties”. All new periodical check-ups and return-to-work examinations are provided for employees. recruits who will work at facilities and examinations after recovery terms. Besides, Private group health insurance at corporate terminals are subject to medical all the employees are provided with the rates is provided for the employees, their examinations either by company doctors or polyclinic and emergency services, as well spouses and children upon request. by general hospital before starting to work. as healthcare consultancy. Besides, every October, employees working Occupational health and safety issues are at Headquarters and at all other regions are In reporting period trainings are organized defined within the scope of collective vaccinated upon their request against flu. for employees regarding negative effects of bargaining agreements signed with the Türk exposure to vocational and social noise, Metal Union and Seafarers’ Union of Turkey. Occupational Health and Safety Committees back and neck health, healthy diet, quitting meet periodically and take suggestions and smoking, using personal protective Improvement practices are carried out opinions raised by employees of all level materials, working with equipments with according to the evaluation of the into consideration. screens, heavy-lifting and carrying, recommendations and complaints of ergonomics, first-aid certification, auditory employees in these matters. As required by the OHSAS 18001, all the protection as well as mouth and dental employees are expected to give their health. Within Ford Otosan, employees are given opinions, remarks and contributions medical examination upon recruitment. regarding the occupational health and 2,525 Arçelik employees have participated Besides, all employees are given periodical safety. Feedbacks regarding every facility in the Turkish Red Crescent’ campaign for medical examination every year. “Healthy are considered in the implementations. blood donations. Days Seminars” are organized that are open Besides, via the employee representative, to the public, employees and their relatives. these topics are considered in the meetings In the scope of the collective bargaining Throughout the year, employees are of Occupational Health and Safety agreements signed with the labor unions, vaccinated against flu. Committees. OHSAS 18001 system relevant provisions are employed in health assessment and the planned activities are and safety topics. Together with this, union Union representatives are invited to evaluated in Management Review Meetings representatives participate in the Occupational Health and Safety Committees in which the General Manager and the Occupational Health and Safety Committee and solutions are found for the topics that other managers participate in. meetings. they bring forward. Suggestions regarding the Occupational Health and Safety are In Aygaz, medical examinations at given special attention in the Human Rights at Koç 11 Koç Group Corporate Social Responsibility Report 2011
71
Total number of active Health and Safety Committees in reporting scope companies Tüpraş İzmit Refinery
Otokar employees are required to prepare topics covered by collective bargaining in workplaces. health reports before starting to work. agreement concluded with Türk Metal Union Together with this, medical examinations are implemented. Union and employee representatives before starting to work are done by the participate in the occupational health and company doctor with regard to the health At Tofaş, employees can actively use systems safety committee which is required to be reports. All the employees are given in which they state their opinions, organized every month according to related periodical medical examination and they go complaints and suggestions on occupational regulations. During this process, the through lung x-rays. For employees who health and safety issues. Union and opinions, suggestions and complaints of work in risky environment, necessary employee representatives can actively Union and employee representatives are laboratory examinations, audiometric participate in the Occupational Health and registered in the minutes of the meetings assessments, respiration functional tests are Safety Committee and convey their and these are taken into consideration by carried out. In the workplace, articles of opinions. Besides, all employees can use the Board of Directors. Following an collective bargaining agreement concluded and give feedbacks to systems such as assessment of the opinions/suggestions and with Türk Metal Union are strictly applied. Individual Risk Notice, SMAT Audit, Risk complaints, all employees are notified of the Analysis with AB Approach, Forum Theatre, conclusions that are reached via the intranet The Union and the employee Occupational Safety Captain, Unsafe portal, or for those employees without representatives take part in the Condition Hunting, WO and YTL computer access, these are sent to a Occupational Health and Safety Committee. occupational safety check lists, Dojo common unit/facility e-mail account or The Union’s and employee representatives’ Occupational Safety and Dojo Ergonomics posted on bulletin boards for safety opinions, suggestions and complaints are training areas. With these systems and environment quality . taken into consideration in the meetings in practices, employees can report all the which the senior managers participate in. unsafe conditions and behaviors they face in Systems such as, Near Miss, Unsafe Act and the field and give suggestions to improve Condition Reporting, Comprehensive Work Otokoç employees receive medical the condition. By this way, zero unsafe Permit Systems, Job Hazard Analysis, Last examination by the workplace doctor upon behavior is targeted. Minute Risk Assessment, Incident recruitment. Employees, who will be working Investigation, Lessons Learned from in the service section, are requested to Suggestions/opinions and complaints Incidents Bulletins, On the Job Safety Talks, provide health report indicating that they received from the employees are monitored Safety-Environment,-Quality basic and are eligible to work in heavy and dangerous in the system. Suggestions and detections refreshment trainings, Process Hazard duties while other employees are requested both from the units and the senior Analyses (HAZOP,What if Checklists etc.), to bring health report and lung x-ray report. management which could not be solved are Change Management System, Behaviour monitored in the system. Decisions are Based Safety Audits are conducted by Employees’ complaints and suggestions are made to solve these problems and to managers and line supervisors. Contractor evaluated in the occupational safety allocate budget. These feedbacks from the Health Safety Environment Management meetings. By this process, with the employees are taken into consideration System are successfully conducted for participation of employee representatives, within periods of 3 months, 6 months and monitoring, selection, evaluation of representation of employees is ensured. annually and encouraged through rewards. performance and for encouraging all employees and contractors in Tüpraş to At Tat, employees are medically examined Tüpraş requests health committee report enhance awareness and systematical upon recruitment and health reports are from a hospital when employees first start to control. also requested. Besides these practices, work. Together with this, every year health insurance with employee employees receive periodical medical TürkTraktör has “New Hire Examinations” contribution is also provided for Tat examination, blood test, urinalysis, conducted for a total of 987 new recruits in employees and their families. audiogram and chest x-ray. Examinations, 2011. The examinations included a investigations and treatment of the respiratory function test, an audiogram and Occupational health and safety topics are employees and their families are realized by a chest X-ray. All employees receive also covered in the collective bargaining the workplace doctor. Every year in polyclinic service. Families do not receive a agreement concluded with the TekGıda-İş September and October, employees receive direct examination service however receive Union. free flu vaccination service and their families consultancy. receive this as a paid service. Employees Besides the medical examinations practiced and families living in the company lodging upon entrance at Tofaş, hemogram, receive training on health issues. urinalysis, lung x-ray, electrocardiogram, Bacteriological analysis for drinking and respiratory function test, blood sugar test, utility water is done once a week in the audiometric control, liver enzymes, blood operational field and in the offices. type detection and psychiatric examination is realized. Besides, employees are also Occupational health and safety topics provided with periodical and other covered by collective bargaining agreement necessary examinations and treatment concluded with Turkish Petroleum Chemical possibilities. Rubber Workers Union for the Occupational health and safety related 01.01.2011-31.12.2012 period are implemented Human Rights at Koç 12 Koç Group Corporate Social Responsibility Report 2011
45,494
Total number of employees covered by Collective Bargaining Agreements
Aygaz Filling Facility
Occupational health and safety issues are (Türk Metal Union, Petrol-İş Union, announced to the employees and TekGıda-İş Union, Seafarers’ Union of Turkey, Employees Covered by implemented within the scope of collective Dok Gemi-İş Union, Mineworkers’ Union and Collective Bargaining bargaining agreement signed with the Türk Bank and Insurance Workers’ Union). Our Metal Union. Four blue collar employees employees can be elected for the managing perform as representatives in the bodies in employee and employer 40.000 Occupational Health and Safety Committee organizations, can be members of Provincial 2,733 and they share their views. Employment Committees, Chambers of Commerce and Industry and NGOs, hence 30.000 Yapı Kredi requires a committee report from contribute to the employment, economy a general State Hospital for Call Center and social life. Supervisor positions indicating that the 20.000 candidate has no impediment to work at Unionization right is not limited to our Group 18,226 35,545 night. In the hiring of people with Companies. Supplier companies also disabilities, a health report obtained from a respect to unionization particularly those 10.000 state hospital indicating the status and supplying our automotive companies; 9,949 degree of disability is required. employees working in these workplaces are also covered by collective bargaining 0 White Collar Blue Collar Employees, their spouses and the children agreements. Processes regarding these for whom they are responsible are covered issues in suppliers are meticulously by private group health insurance. Medical monitored for prevention of any breach. Employees not covered by Employees covered by expenses not covered by the Private Group collective bargaining collective bargaining Health Insurance are paid by the Bank Koç Group contributes to the maintenance agreement agreement Retirement Pension Foundation. of permanent social dialogue and Furthermore, a health certificate is issued by development of relationships with the the Bank Retirement Pension Foundations Unions both in Turkey and abroad. As a for parents not covered by social security if good example, employees of Arçelik Plant in this is documented with official papers and Romania and Defy Plants in South Africa are %32 they can take advantage of health services covered by collective bargaining agreement Employees not covered by collective under this coverage. and exercising their right to unionization. bargaining agreement
In the scope of collective bargaining agreement signed with the Bank and Insurance Workers Union, there are articles regarding the occupational health and compensation for death and disability resulting from job-related accidents. Labor Union Rights at Koç %68 We believe that maintaining a continuous, Employees covered by collective bargaining reliable and constructive social dialogue is agreement essential for industrial relationships and for the protection of peace at work. In this respect, our commitments to voluntary initiatives and regulations both at national and international level make importance we give to the relationship level with the unions visible. Koç Group does not show any noncompliance with the relevant local laws and regulations in the countries that it operates while respecting freedom of unionization and collective bargaining of employees.
From this respect, 45,494 employees in more than 32 workplaces of 14 companies in the Koç Group are union members. In these workplaces, collective bargaining agreements are concluded after negotiations with the authorized unions Human Rights at Koç 13 Koç Group Corporate Social Responsibility Report 2011
Work Environment at Koç
“Our most valuable asset is our human resources.” Our Founder Vehbi Koç
Koç Group reaches its continuous success in continuous development, employees are providing high quality products and services supported with the Group HR systems. One and develops its objectives thanks to the of the most significant ways to provide the strength provided by its human resources. A continuity of the Koç Group through climate of mutual trust and respect generations is the investments in human established together with employees has a resources. In this respect, we attribute significant share in the place we have utmost importance to; reached. The continuous development of this climate is highly crucial for the Group. In • Providing a high skilled workforce this respect, we aim to attract and employ • Ensuring continuous development of the most skilled workforce in the Group. Our workforce permanent goal is to do what has not yet • Ensuring high level motivation amongst been done; realize what has not yet been employees realized with our most valuable asset, our • Bringing employee satisfaction and loyalty human resources. to the foreground
2011 data regarding employee demographics of the Group Companies within the reporting scope is shown below:
Employee Breakdown by Category Employee Breakdown by Employment Type
Blue-Collar 38,278 Full-time 66,022 White-Collar 28,175 Part-time 431 Total number of employees in 2011 is 66,453.
Employee Breakdown by Gender Employee Breakdown by Contract
Male 48,387 Indefinite Term 62,697 Female 18,066 Fixed Term 3,756
Employee Breakdown by Age Number of Interns
Older than 50 1,741 University 2,885 Between 30 and 50 39,132 High School 3,296 Younger than 30 25,580 Total number of interns in 2011 is 6,181.
In Turkey operations there were a total of 252 senior executives, 14 of whom were expats while 238 were Turkish citizens. During the same period, 51 expats were employed in Turkey operations while 60,814 employees were Turkish citizens.
In order to enhance efficiency and ensure Work Environment at Koç Work 14 Koç Group Corporate Social Responsibility Report 2011
66,453 48,387 18,066 6,181
Total number of employees Total number of male Total number of female Total number of interns in in reporting companies by employees by the end of employees by the end of group companies by the the end of 2011 2011 2011 end of 2011
Recruitment Employees working in the Group convey their views. Interviews are carried Companies are being informed on the social out throughout the year in order to monitor We continuously work throughout the year rights, occupational health and safety topics the employee development. Evaluation in order to recruit the best people in line and working conditions by the “Personnel interviews are carried out at the end of each with the Koç Group’s objectives and Regulations.” Personnel regulations include year for the developments planned for the principles. During the recruitment process, sector specific implementations of Group following year. Training is provided for the in accordance with our understanding of Companies while reflecting Koç Group HR employee at every level both internally and equal opportunities, all kinds of Policies. Accordingly, the relationships of the externally based on the needs that have discrimination are prohibited. People Group employees with stakeholders are been identified. fulfilling job requirements are hired as a outlined by “Code of Ethics and Business result of assessment of their competencies. Conduct.” Code of Conduct Boards have Training Provided by Employment Type been established in all our Companies in (manxhour) order to monitor the compliance with the One of the most important aspects valued Blue-Collar 1,020,426 ethical behavior rules. Both the personnel during the Koç Group recruitment process is White-Collar 1,493,768 competency. We expect our candidates, for regulations and the ethical behavior rules every department and position, to possess together with implementation principles are For detailed information on the training the Koç Group’s main competencies. updated according to the amendments in the law and current requirements. and development planning processes, please visit For more detailed information on the Koç http://www.koc.com.tr/en-us/Career/Pag Group’s competencies, procurement and Koç Academy and Training in Our es/Training_and_Improvement_Planning_ orientation processes, please visit: Companies Process.aspx http://www.koc.com.tr/en-us/Career/Pages/R ecruitment_and_Orientation_Process.aspx Koç Academy is a platform for training, development and sharing where activities Koç Group Compensation System that will encourage the development of Koç Group employees are planned and We determine the total income of the Koç Minimum Notice Periods executed, taking into consideration Group employees according to the current As a basic principle, in cases of new Group/Company/individual requirements. It salary market and competitive and fair assignments, workplace shut-downs is integrated with HR systems such as policies by managing our employees’ realized according to the measures performance evaluation and competency compensation and benefits through Koç outlined by law, or collective assessment. Compensation System. The employees’ redundancy, employees are informed salaries are determined in an evaluation in advance in order to avoid any The system incorporates tools and workflows system that considers primarily the content negative impact as much as possible. that provide every single employee to make of work, responsibility taken and perfor- Within the framework of legislation personal development plans according to mance shown. Gender does not have any currently in effect, when wide-scale the work carried out and individual effect on the salary system. layoffs or a workplace shut-down is objectives. Besides these, Koç Academy is required due to economic, used as a resource planning infrastructure. Minimum wage that is in effect in our technological, structural or similar The system has a competency of resource country is taken into consideration during operational workplace or business planning and management that enables the the determination of salaries. In addition to requirements, union workplace management of all stages of training and the monthly gross salary, employees are representatives will be informed of the development process, reporting of the same paid a bonus that is equal to four month situation in written form at least 30 days and the registration of every learning move. salary and also a benefit package. In most of (at least 4 weeks) in advance and it will our workplaces, there are job categories be announced at the workplace. In determined by regulations or collective negotiations that will take place Development plans have been established for 15,916 employees working bargaining agreements. Grouping practice between workplace union causes a difference in the real wage representatives and the employer after in Group Companies within the system. A total of 93,357 development activities are structure compared to the minimum wage. the announcement, the following issues As a result of these practices, real wages will be addressed: preventing the assigned with reference to these plans and 88% executed during the reporting paid by the Group Companies are above the layoffs or reducing the number of minimum wage level. employees who will be laid off, as well period. as minimizing the negative impact of the layoff on workers. A report will be Areas in which the employees are expected drawn up at the conclusion of the to demonstrate development in the negotiations demonstrating that the upcoming period are identified by meeting took place. integrated HR applications like Koç Academy. While designing developments plans regarding these requirements, responsible managers provide guidance and Work Environment at Koç Work 15 Koç Group Corporate Social Responsibility Report 2011
Tofaş Assembly Line
In certain Group workplaces, the salary paid Employee Engagement Survey evaluation on the suggestion and submits to to new recruits is different from the the relevant manager who evaluates the minimum wage as required by collective In 2011, Employee Satisfaction Survey suggestion and informs Improvement bargaining agreements. For example, in our practice has been replaced by Employee Director on outcomes. After the evaluation if Companies (Tofaş, Ford Otosan, Arçelik, Engagement Survey. The General Engage- successful practice is observed, Improve- TürkTraktör, Aygaz, Otokar) that employ the ment Score of the Koç Group is determined ment Director demands for rewarding of the Metal Sector Job Evaluations System, to be 42%. In the scope of this work, a total suggestion from a superior board, Sugges- different starting salaries are outlined at of 45,341 questionnaires were filled out. The tion and Improvement Board. If the result of different levels depending on the size of the ratio of completing the questionnaire was the evaluation is negative, the employee job. At the lowest level, this percentage is 87%. Compared to the work life evaluation who has made the suggestion is informed 7.3% higher than the minimum wage and it survey, the number of responses and the about the outcome and the process is 9% on average. ratio has increased. finalized. If the result is positive, the suggestion is sent to Field Manager. For more detailed information regarding Suggestion is rewarded by Improvement the benefits offered to Koç Group Suggestion Systems Directorate, if Field Manager finds the employees please visit practice appropriate. http://www.koc.com.tr/en-us/Career/Pa Koç Group Companies are committed to ges/The_Benefits_Provided_to_Koc_Gro continuous improvement of business In Opet, the new sharing platform “Traffic” up_Employees.aspx processes. Most valuable information source portal is offered to the employees at the last regarding continuous development quarter of 2011, so the online suggestion and Koç Holding is one of the few Turkish processes are employee feedbacks and forum system is in effect. With this system, companies linking compensation of senior suggestions. In this respect, the systems to the employees share their suggestions, executives with sustainable financial and receive employee suggestions are essential opinions and views with all the employees operational performance. Large proportion for the sustainability of our business. Besides and also make comments on the sugges- of the compensation for Group’s senior collecting employee views, through these tions. Accordingly, employees rate sugges- executives consisting of salaries and practices, we also enable them to participate tions they like; hence suggestions are bonuses is paid depending on performance. in the management. ranked. One of the advantages of having an Bonuses for Senior Executives in our 288,738 among 349,888 suggestions online system is that a suggestion can be Company are calculated according to received from employees working in the evaluated by all the other employees. company performance, individual perfor- Companies within the reporting scope Compared to the conventional method of mance and bonus basis. In the evaluation of were put into practice during 2011. form collecting, thanks to this online system, individual performance, in parallel with the it is aimed to have the suggestions viewed company performance, long-term sustain- and evaluated by all employees. able improvement principle is considered Within Individual Suggestion System of together with financial outcomes. Arçelik, employees fill out suggestion forms; There are also suggestion boxes at produc- and hand those to Suggestion System Unit tion sites/terminals and employees’ opinions The main purpose of the performance Responsible by whose feedbacks sugges- and suggestions are received in this way. management system that is practiced tions are put into practice. Employees can Every month, the opinions and complaints Group-wide is to evaluate our employees’ track the situation of the suggestions are collected from the boxes and submitted performances in an objective manner in line through the system. Trainings that teach the to the Terminal Managers. After the opinions with common objectives and to reach the usage of the suggestion system are and complaints are evaluated, they are top level performance. All the white collar organized and written briefings are submitted to relevant unit managers to be employees working in the Koç Group continuously provided by the Human solved. After they are completed, necessary Companies are subject to annual perfor- Resources Managements. Employees collect briefing is given. mance evaluation. In reporting period, the points for each suggestion they give and number of mid-level managers that have they are rewarded at the end of the year. The Otokar Suggestion System (OSS) begins received performance evaluation is when suggestion forms are filled via approximately 2,600 while the number of At Aygaz, employees make their suggestions intranet. OSS Suggestion Forms are first senior executives is approximately 300. through “Individual Suggestion Forms.” evaluated by the first-line supervisor of the These suggestions are entered into employee who made the suggestion and if Electronic Individual Suggestion System by found positive, points and rewards are For more detailed information regarding the supervisors at the facilities. Suggestions calculated. Then the suggestion is sent to competency and performance evaluation which are found to have positive impacts are the relevant Unit Suggestion Supervisor. processes in the Group, please visit transferred to Individual Suggestion System Suggestions that are evaluated as positive by http://www.koc.com.tr/en-us/Career/Pag Evaluation Committee. The Committee the Unit Suggestion Supervisor are evalu- es/Competency_and_the_Performance_ makes a general evaluation over the system ated by the Suggestion Evaluation Board, Evaluation.aspx and the employee who makes the sugges- and then the first five suggestions of every tion is informed about the result month are determined. Every month, Employees at Ford Otosan, fills an electronic form to give their suggestions. The Improve-
Work Environment at Koç Work ment Coordinator makes a preliminary 16 In 2011 288,738 of 349,888 employee suggestions received by reporting companies Yapı Kredi Banking Academy were implemented the best five suggestions are rewarded and Within Tüpraş Plants and Units, employees Most Successful Koç Employees employees are informed. Employees who can convey their individual and original give suggestions receive notification letters suggestions through Refined Suggestions The Most Successful Koç Employees to be informed about the negative and System suggestion forms. Suggestions Rewarding System (MSKE) is a recognition positive outcome of the evaluation. received are evaluated on monthly basis. As system that encourages Koç Group Rewarding Evaluation Committee selects a result of technical evaluation, suggestions employees to develop their competencies. and rewards The Suggestion of the Year submitted to the relevant units and finally The purpose of the rewarding system is to among the suggestions that have been evaluated by the Suggestion System Board. increase employee loyalty, motivation and rewarded throughout the year. The productivity throughout the Group, to make employee who provides the highest number TürkTraktör aims to encourage all employ- a contribution towards a learning organiza- of suggestions throughout the year is ees to participate in the improvement tion and to discover and promote the best recognized and rewarded as the Suggestion practices in the World Class Manufacturing practices in the Group in this regard. Champion. practices and to extend this culture to all the employees via Individual Suggestion System. As a result of the studies held in 2011, two Suggestions at Otokoç are periodically Employees convey their suggestions categories were added to the existent assessed by the Suggestion System through filling out the suggestion form. Cooperation, Creative Innovations and Supervisor who reviews if submitted Suggestion supervisors work in the comple- Customer Satisfaction categories which are; suggestion has been properly outlined and tion of this process by evaluating them. The whether or not it is related to a subject that suggestion supervisors enter all the Making A Difference: This category includes has been previously submitted or on which a information in the suggestion system in the projects that question the way of doing research studies is already in place. The World Class Manufacturing portal including business, suggest creative alternative Suggestion System Supervisor submits the the cost benefit analysis. Suggestions that solutions to amend existing conditions, apply suggestion for approval. Suggestions which are put into use receive points according to them and improve processes which ensure pass the first round of approval are filed by the points system and rewarded in the customer satisfaction the Suggestion System Supervisor and Recognition/Appreciation process. submitted to the Suggestion Evaluation Adding Value to Life: This category includes Committee. Suggestions that have been Yapı Kredi employees convey their sugges- employee projects that contribute to society evaluated and accepted quarterly are tions through the “Suggestion Management and environment with social responsibility followed by the Suggestion System Supervi- System” in the company intranet. Received outlook, raise awareness with these studies sor. suggestions are shared with the relevant and promote volunteering, which are teams and the employees who have made effective in terms of the sustainability and The Tat Suggestion System encompasses all the suggestions are informed. expansion of studies initiated. Tat employees, subcontractor employees and interns, excluding only managers. Leader Development Programs Since 2003, a total of 48 companies and 535 Employees may convey their suggestions projects have been nominated while 426 either over the intranet or by filling out a The primary objective of the leader employees have been rewarded. The MSKE suggestion form and putting it in the development programs that are carried out evaluations for 2011 are still ongoing due to suggestion box. Suggestions are evaluated Group-wide is to prepare managers that will revision of the processes. by the Enterprise Suggestion System carry the Koç Group to the future for Supervisors and the Decision-Making greater responsibilities. These programs are Committee. crucial for generating a Group-wide common leadership language and culture. With the Individual Suggestion System that Varying programs according to the different has been in place since 1993 in Tofaş, it is management levels in the Group are run aimed to provide the participation of the with the support of Koç University and employees into improvement practices in specialized institutions. The program creates the scope of World Class Manufacturing significant learning and sharing opportuni- operations and to make the improvement ties in terms of blending the different culture spread among all employees. company and sector experiences as well as Suggestions can be given via forms or enabling mobility and rotation between website. Suggestion System is also Group Companies. 832 managers have integrated with Recognition and Apprecia- participated in scheduled programs in 2011; tion System. There is a unique scoring and a total number of 4,676 managers since system for the suggestions that are put into 2003. use. Employees can shop in company cooperative with the points they collected through their participation in the continuous improvement practices. In 2011, blue collar participation in the system was 99.2%. Work Environment at Koç Work 17 Koç Group Corporate Social Responsibility Report 2011
Approximate number of Koç My Family Program members by the end of 2011 87,000
Koç My Family Program Professional and Personal Life Factory employees have planted 4,000 Balance at Koç saplings during “World Environment Day.” In With Koç My Family Program, Koç Group addition to these, the employees have voluntarily participated in White Fish Play employees are provided advantages with With the modern human resources policies Room, Search and Rescue in Van; and Blood regards to the Group Companies’ goods and applied in Group Companies, it is paid Donation campaigns. services as well as extra advantages through utmost attention to safeguard the profes- periodical campaigns. In addition to these sional and personal life balances of our Social Activity Club, which was established in opportunities, social activities and social employees. 45 hours working system is 2009 by Aygaz employees and which responsibility projects which will enhance carried out within the boundaries deter- pursues its activities with regards to the the awareness of being a Group employee mined by legal regulations. Generally in principle of employee volunteerism, has are presented to the employees. Companies operating in services sector, this carried out its activities within the reporting working duration is completed in five period. All Aygaz, Mogaz, Aygaz Doğal Gaz At the end of 2010, the program had a total workdays and employees take the weekends and Akpa employees and their relatives can of nearly 87,000 members. off. In industrial companies, shift working participate into the activities which are also order is applied and the employees who supported by Aygaz senior management. In complete their weekly 45 hours of work take Koç Holding Retirement Pension 2011, organizations such as participation to minimum 24 hours uninterrupted off time. Foundation Dragon Fest Boat Race, Cookie Competition, Shift workers are ensured to work in concerts, theatres, open-air cinema and accordance with the law; one week in Koç Holding Retirement Pension Foundation bowling tournament have been realized. is a large-scale social security institution daytime and the following week at night, so that they can spend more time with their founded in 01 October 1967 in order to The Aygaz-Opet Turkish Music Choir, which families. In religious and national holidays, provide employees working in Koç Group initiated its activities in 2004 with the New Year’s Day, it is ensured that our Companies and who are subject to Social participation of Aygaz and Opet employees, employees can spare time for their personal Security Institution with “a supplementary was founded in order to meet those who are lives; otherwise there are exceptional social security and support.” The foundation keen on Classical Turkish Music and to conditions such as breakdowns, renovations, provides its members with full payment of create opportunities for them to engage in production work loads and other force balance, retirement pay, health insurance their hobbies. While initially the choir was majors. In addition to these practices, and financial assistance services. Moreover, composed of Aygaz and Opet employees, in annual paid leaves are granted beyond the compensations are granted to the heirs of time it developed as to include the employ- durations foreseen in legal regulations. deceased members and disabled personnel. ees of other Energy Group Companies and Koç Holding, the relatives of the employees The sums derived from the members and Employee Volunteerism and dealers and today it is pursuing its companies are invested in the financial activities with the same pace. The Aygaz- markets and augmented, providing the The social projects carried out by Koç Group Opet Turkish Music Choir not only helps foundation members peace and comfort Companies are carried out mainly by employees develop team spirit and during their retirement. As of the end of employee volunteers. In the projects where cooperation, but also aims to make a 2011, the Koç Holding Retirement Pension the employees voluntarily participate, a wide positive impact on their professional life by Foundation had 50,833 active and 237 range of programs from environment to bringing employees together under the retired members. education, from health culture and arts are same roof outside the workplace. implemented. Yapı Kredi provides its employees a Koç Information Technologies Group has unique opportunity regarding retire- During the year, various number of realized a tree planting ceremony with the ment. Yapı Kredi supports secondary employees from all of the Group Compa- participation of 125 new graduates within the financial guarantees for its employees at nies voluntarily participated in projects such reporting period as a part of an organization retirement and has contributed to the as “I am Donating Blood for My Country”, initiated by KoçSistem. Within the scope of Group Individual Retirement Plan since “Vocational Education: A Crucial Matter for Green Information Platform Project activities 2006. At the end of 2011, 70% of bank the Nation”, and “The Koç Sports Festival.” and with the cooperation of Koç University, employees were taking advantage of the “Responsibility Now before the Resources Group Retirement Plan. Yapı Kredi In 2011, a total of 24,581 people, 22,499 of Cease” conference was realized; the employees, along with their spouses and which were employees and 2,082 of determination of messages that will raise the children are covered by Group Health which were volunteer participants, took public awareness and serve the spread of Insurance. part in volunteer activities carried out by information was specified with the participa- Group Companies. tion of employees. With the “Stair Surprises Campaign,” the employees were encour- aged to use the stairs instead of the In Arçelik, Eskişehir Refrigerator and elevator; hence a practice which promotes Compressor Factory employees have healthy and environmentalist lifestyles was planted 2,500 cedar and black pine saplings implemented. to “Arçelik Employees Memorial Forest” in 15 April 2011. Furthermore, Washing Machine Work Environment at Koç Work 18 Koç Group Corporate Social Responsibility Report 2011
The Aygaz-Opet Turkish Music Choir
During the year, Callus Samsun location In addition to these programs, Tüpraş Yapı Kredi employees have been voluntarily employees visited the Society for the employees voluntarily participated in the participating in “Read, Think, Share” Protection of Children; they brought along Flora Project and Happy Waste Project. leadership development program which is the aid materials and presents which they pursued in cooperation with Young Guru gathered through their own initiative. Again, In TürkTraktör, ISIG Volunteers, employees Academy. in a program initiated by Koç Information informed on occupational safety, who know Technologies Group employees, 120 the legal regulations and requirements, and Koç Employees and Sports packages of belongings including blankets, who are qualified in determining the sleeping bags, adult clothing, boats, occupational safety accidents and In all Koç Group Companies, the employees pullovers, coats, pants, socks, skullcaps, shortcomings, support projects related to are encouraged to participate in social clubs stocks, gloves, underwear, child and baby these issues within the company. Kaizen and are provided with a wide range of clothes, diapers and other aid materials System, which runs with the voluntary sportive opportunities. In addition to the were collected. participation and great interest of employ- presented opportunities, since 1989 in every ees, aims to reduce losses regarding May and June, Koç Group Sports Festival is In Opet, social activity clubs pursue their equipment, labor, material and energy being conducted with the participation of activities with the voluntary participation of usage via continuous improvements. Group Companies’ employees. Every year, employees. The clubs function in dancing, Attention is also paid to improving the over 3,000 employees participate in the sailing, photography, swimming, theatre, environment, employee health and Festival which aims to help employees cooking, basketball, volleyball, extreme occupational safety. develop healthy lifestyles, intensify the sports, trekking and bowling branches. solidarity among the employees as they are Employees voluntarily participate in social Solution Teams are composed of teams gathered outside the workplace and provide responsibility projects at Opet, such as Clean made up of employee volunteers. These opportunities for recreation. Toilet Campaign, Exemplary Village Project, teams strive for continuous improvement in Green Road Project and the Respect for their jobs. During the year, the awards were presented History Project. to the top three teams and employees of the Yapı Kredi formed Yapı Kredi Volunteers competitions held in mini football, basket- In Tofaş, five corporate culture clubs were Platform to gather under a single roof the ball, volleyball, table tennis, tennis, established in line with the five transition various voluntary projects conducted under swimming, athletics, chess, veteran football themes determined according to corporate the “Social Responsibility Project for Each and bowling. The sports festival which took culture studies based on company values. In Department” motto. The themes of the place with the participation of 300 employ- these clubs, the number of volunteers projects, NGOs and project budgets are ees in five different branches in its first year reached 223 in the reporting period and determined by volunteers. has grown to 3,400 employees competing in programs related to customer-orientation, 10 sports. The festival aims to promote the innovation, cooperation, business partner- In 2011, eight departments/affiliates have participation of more employees in wider ship and employee development themes either developed new projects or continued number of branches in the following years. were implemented. with the existing one within the scope of Yapı Kredi Volunteers Platform. As of the end of After five weeks of competitions by teams Tüpraş İzmit Refinery employees voluntarily 2011, 334 Yapı Kredi employees were comprised of both male and female participated in meetings with school voluntarily participating in the projects. employees of Group Companies and teachers, scholarship students and the individual athletes, awards were given to the Vocational High School Coaches (MLK) With the Gift Matching Program which is top three teams and medals were presented within the scope of “Vocational Education: A pursued in cooperation with UniCredit to the players in ceremonies held in each Crucial Matter for the Nation” Project Foundation, Yapı Kredi provides the region. The top managers participated to the (MLMM), TÜYAP Electric-Electronic Exhibition opportunity for its employees to donate for ceremonies as well; in Istanbul, where the visit, Çanakkale tour, “Ruby Group” scholars’ given NGOs. The UniCredit Foundation participation to the festival was highest, graduation ceremony, and 1st Field Practice donates as much as the donations gathered Turgay Durak, the CEO of Koç Holding has studies within the scope of MEGEP. as of the end of campaign, hence resources presented the cups and medals to the spared for the projects are doubled. winners. Batman Refinery employees, in addition to MLK meetings and processing modules with In 2011, the non-governmental organizations scholars, participated in MLMM 2011 Activity and the projects which were supported Planning Study, MLMM Graduation within the scope of Gift Matching Program Ceremony, MEGEP Field Practice and Skills are: Internship, Batman TEGV Foundation Meeting and Communication Training, TEGV • Turkish Red Crescent / Van Earthquake Teaching Approaches and Models Training, Support Campaign TEGV Research Workshop studies, whereas • LÖSEV / Aid Campaign for the School for Kırıkkale Refinery employees have partici- Children with Leukemia pated in MLMM and MEGEP activities and • Community Volunteers Foundation / April 23rd Batman 4th Children’s Festival. Value for Youth Project Work Environment at Koç Work 19 Koç Group Corporate Social Responsibility Report 2011
During 2011, a total number of 24,581 22,499 2,082
people of which were employees of which were volunteer and participants
took part in volunteer activities carried out by Group Companies.
In Aygaz Headquarters, there is a fitness company with tennis, scuba diving, skiing by 130 volunteering employees, 310 activities center where employees can exercise with and sailing clubs. were held within the reporting period. trainers; and in locations outside the Tüpraş employees, who participate in headquarters there are facilities where they In Tofaş factory, employees can use intra-group, intra-company and national can play football, volleyball and table tennis. basketball and volleyball courts and fitness competitions such as Business League Tournaments are held in line with the room that belong to Sports Club; and also 2 Basketball Tournament, Companies League interests of employees and participation to tennis courts and 1 outdoor basketball court. Volleyball tournament and inter-company Koç Group Sports Festival from every region In various locations at ateliers, table tennis football, street ball and bowling competi- is encouraged. equipments are open to the constant usage tions and Koç Group Sports Festival; of the employees, whereas there is a fitness appended their signatures to successes in In order to raise the communication center in the Istanbul facilities. various levels. amongst the Arçelik employees, there are fitness centers, tennis courts and basketball Courses in tennis, chess, diving, sailing and and football fields in campuses. Outdoor other sports branches are organized for the and indoor sports facilities are present in employees whereas swimming, basketball addition to the spaces whereby table tennis, and football summer courses are opened by billiards and backgammon activities can be Sports Club for the benefit of employees’ pursued. Off campus activities such as skiing children. Company social clubs organize and bowling tournaments are conducted for tournaments in tennis, table tennis, bowling, employees. Every year, the employees are chess, athletics, volleyball, basketball and actively participating in Koç Group Sports football branches. Moreover, participate, on Festival along with the sports activities held to intercompany tournaments and leagues in campus and among departments. such as Corporate Basketball League, Bursa Intercompany Basketball League, Bursa In Çamlıca Business Center, where the Intercompany Volleyball League, Inter companies of Koç Information Technologies Automotive Companies Bowling Tourna- Group reside there is a gym available to all ment. While the participation to Koç Group employees. In 2011, 90 employees partici- Sports Festival takes place in football, pated in Koç Group Sports Festival in volleyball, basketball, tennis, bowling, football, basketball, table tennis, swimming, swimming and athletics branches; football mini football and bowling branches. tournaments that last 3-4 months twice a year are conducted with the cooperation of Within the body of Opet, there are basket- labor union and participation of over 1,000 ball, swimming, tennis, sailing, volleyball, employees. Besides these, inter Fiat football, bowling, nature and extreme sports companies athletics competitions, diving (skiing, rafting) teams actively participated trips, and chess games with Koç Companies by the employees. Every sports branch has a and sub-industries are organized. Approxi- team captain. Team captains are determined mately 50,000 people participated in the as to meet the gym, material and suchlike sports activities within the reporting period. demands of the relative sports teams and they are responsible for the budget In Tüpraş, participation of all employees to management of the teams in coordination sports organizations and centers which with the Human Resources. ensure affiliation among them, develop team spirit and contribute to the develop- Beside the swimming team, for ensuring ment of employees’ physical and spiritual participation of non-team member health is promoted. 4 fitness centers which employees to swimming activities, an are arranged with reference to the Private agreement was made for Galatasaray Sports Facility Regulations of Body Building Olympic swimming pool in Burhan Felek Federation are present in the refineries. In Sports Complex, and it is open to employees addition to this, there are swimming pools at certain times. constructed in line with the regulations of the Ministry of Health in every refinery, and Otokar offers employees the opportunity to indoor sports facilities, open basketball and take advantage of the sports facilities such as tennis courts, Astroturf football pitches, basketball courts, football fields, gym and walking roads and squash facilities are tennis courts. present in some of the refineries.
Volleyball, football, basketball, bowling and 1,400 employees participate in 36 social athletics competitions are conducted within activity clubs among which there are the the company. The employees are encour- Search & Rescue, Sailing, Underwater and aged to conduct sports activities outside the Nature clubs. While the clubs are managed Work Environment at Koç Work 20 Koç Group Corporate Social Responsibility Report 2011
Koç Group Sports Festival
The traditional TürkTraktör Sports Festival is Altunbaş in swimming, Bayram Kuytan in conducted in 16 branches; basketball, mountaineering, Kaan Göker in tennis, football, volleyball, table tennis doubles, Özcan Çetinkaya in para-taekwondo and table tennis singles, backgammon, chess, Serhat Bayhan in bicycle. dart, table football doubles, table football singles, table football triples, checkers, badminton doubles, badminton singles, three balls and pool. In 2011, 1,687 employ- ees, 71% of workforce, have participated to the festival. Increase in participation is ensured with the opening and closing ceremonies. Dedicated festival magazine “Chivalry” is published together with the employees during over two months activities of the festival. The success of the festival depends on the committee members for each branch. The committee members realize their tasks such as the arrangement of fixtures, realization of fixture draws, coordination of follow up and arrangement of the games and publishing of the game results with the relevant teams. 62 employ- ees have volunteered for the event during the reporting period.
TürkTraktör hosts Ankara leg of Koç Group Sports Festival which comprises of basket- ball, volleyball, football, bowling and table tennis branches. TürkTraktör employees compete with other Koç Companies’ employees in the games lasting over one month. Besides the festivals, indoor sports facility in which shower, heating and equipment opportunities are provided, such as football pitch, resting spaces with billiard and table football tables are present for the use of employees for non-working hours.
The Yapı Kredi Sports Club Association was established in 2007 for the purpose of making social activities possible for all employees under the Koç Financial Services umbrella including their spouses and children as the latter can become member and take advantage of them. Sports activities including football, sailing, tennis, track and field, volleyball, basketball, chess, archery, marksmanship, RC modeling, water sports, motor sports and skiing are regularly held. The association also conducts photography, theatre and dance training activities.
The sites in Bağlarbaşı Koru facilities, Levent Plaza D Bloc and Gebze Banking Base are used for the sports activities of Yapı Kredi personnel. Since 2005, Yapı Kredi has been conducting an internal sponsorship project in order to promote and support the success of employees’ sports activities. The employ- ees who were supported within the scope of internal sponsorship in 2011 are Celal Work Environment at Koç Work 21 Koç Group Corporate Social Responsibility Report 2011
Environmentally - Friendly Practices at Koç
“Another fundamental principle that we have pioneered and which is non-negotiable for us is fulfilling our responsibilities to both this and future generations.” Our Founder Vehbi Koç
At the heart of the business success of the Vision and Mission, Koç Group extending to the operational centres of the Koç Group Companies lies anticipating Environmental Policy, and Koç Group Koç Group Companies. The highest decision tomorrow’s physical and economic Climate Change Strategy issued last year making body of Koç Holding Environmental environment, discovering future needs from define the fundamental paths to be followed Management Organization, aiming to today; and providing perfect answers for by each and every company in the Koç ensure active participation of the Group social expectations through innovative Holding ecosystem during their operations. Companies at every level, is the “Koç Group products and services accompanied by their Apart from those policies designed to be Environmental Council”. Composed of sector leading corporate approaches. compatible with the international executives responsible for Group Understanding what is yet to be visible in the environmental management principles, Companies’ environmental management, present time and thereby playing a role in standards and initiatives including the United the main duty of the Council is to determine the shaping of the future is a principle we Nations Global Compact; full compliance long-term strategies regarding adopt in every dimension of our operations. with the legal regulations of the countries environmental management and to As far as our corporate sustainability we operate in with regard to the issues of formulate action plans for their execution. practices are concerned, the most material environmental management is the Environmental Council supports Group aspect of this approach, which we have minimum operating condition for the Koç Companies for the implementation of these followed without any compromise since our Group Companies. Koç Group is composed strategic plans. Furthermore, the Group very start, is environmental sensitivity. of tens of companies active in various Environmental Council is also responsible sectors with different characters. That is why for coordinating efforts to comply fully with One of the reasons of existence for the the Group Companies operate according to the amended environmental regulations business world is to provide the large the environmental policies and strategies and handling the periodic audits in segments of the society with the products established in line with the expectations and cooperation with the Audit Group. The and services that they need to attain a needs of the sector as well as the legal results of environmental audits and the humane level of daily life comfort. However, regulations and the operating principles improvement goals that emerge are the ever increasing needs in parallel with already set by Koç Holding. submitted by the Koç Holding CEO to the the growing total world population coupled senior management of the company for with the resource constraints caused by this The details regarding Koç Holding’s their assessment. development, the negative environmental approach to environmental management impact stemming from production and are available on the corporate social Since the energy is the common input of consumption day by day make it harder for responsibility page at www.koc.com.tr Group Companies and has a direct impact the business world to fulfill this task without on the climate change, the current most risking the future generations’ quality of life. The environmental management activities significant environmental problem, “Energy Environmental issues, climate change undertaken by Koç Holding and Koç Group Efficiency Working Group” is founded with topping the list, constitute the fundamental Companies cover three main areas. the participation of energy managers from risks that we encounter today. Since this is Consequently, all Group Companies Group Companies. Responsible for drawing the case, as Koç Holding, we believe that it is perform the following: up plans for improvement by its expert our binding responsibility to come up with sub-committees, the Energy Efficiency creative and innovative solutions in an effort • Keep environmental impacts created by Working Group is a management body to eliminate the environmental risks. Our their activities under control and work on aiming to create synergy throughout the goal is to secure the future of the improvements that will reduce these whole Koç Group thanks to sharing communities we operate in while at the impacts. examples of best practices, developing joint same time creating new opportunities • Monitor environmental impacts created by projects and establishing a culture of energy through the high performance we show, manufactured goods and services for the efficiency. thereby also improving our corporate whole life-cycle, from the design and sustainability further. That is why we planning stage until the end of their The strategic plans prepared by the prioritize environmental sensitivity in every economic life; work on reducing these environmental management bodies of the dimension of our operations and take part in impacts by developing environmentally Group are transformed into performance joint initiatives not only with public agencies, friendly products. goals on company basis and are thus spread professional organizations and NGOs but • Carry out educational activities to increase throughout the whole organization starting also with various other parties involved knowledge and awareness on from the top level management of the whether they are local or international, for environmental protection among large company. The company environmental the sake of promoting environmental segments of the society, particularly management organizations carry out the sensitivity in the business world and society employees, customers, dealers, suppliers, work for the implementation of the defined at large. contractors and other operational goals on company basis. Moreover, stakeholders; develop field projects in their specialized energy management units are Environmental Management areas of operation that protect and promote organized as well within the Group biodiversity. Companies which operate in critical sectors The main framework for Koç Holding’s in terms of energy consumption or are over environmental management is defined The Environmental Management for Koç a certain operational size. The essential through strategies and policies created at Holding is performed through an duties of the environmental management Group level. Koç Group Environmental organization starting from the Holding and organizations of the companies include Environmentally-Friendly Practices at Koç 22 Koç Group Corporate Social Responsibility Report 2011
World Climate Summit
monitoring the changing sector based and Environmental expenditures and views the problem of climate change as a general management systems along with investments made by the Koç Group threat to natural life but also as a grave risk legal regulations with a view to ensuring Companies in 2011 reached TL 203.5 million capable of producing severe influence over prompt compliance, hence minimizing the in total. The environmental expenditures our social and economic lives. We therefore environmental impact stemming from rose by 51.1% when compared with 2010 and regard the operations and investments to be company operations. Tüpraş, which accounts for 88.9% of the undertaken to deal with the climate change environmental expenditures, realized TL not as an issue increasing the costs but as an In order to reinforce the environmental 180.9 million of environmental expenditure. opportunity to invest in a field enabling us to management structures, the Group eliminate a fundamental risk to the world Companies not only benefit from the widely Out of the TL 6.3 million total environmental and enjoy new business opportunities as recognized system standards as far as their expenditure Arçelik made in 2011, it spent TL well as create new jobs at the same time. As management methodologies are 4.1 million for investments focused on the part of this approach, Group Companies concerned, but also protect the system environmental and energy management, TL execute studies for calculating and reducing reliability through periodic external audits. 1.46 million for waste management and emission in line with the Koç Group Climate ISO 14001 System Standard is a widely used operational practices, TL 0.8 million went for Change Strategy and 2020 GHG Strategic methodology by the Group Companies in environmental protection and administrative Plan. environmental management. In 2011, out of practices. the 74 facilities* owned by the Group Koç Holding and the Group Companies Companies within the reporting scope, 63 In 2011, Aygaz spent TL 1.87 million in carry on with their projects to fight the operate with ISO 14001 certification. Thus, in environmental expenditure and investments climate change and also play active roles in 2011 ratio of facilities under ISO 14000 while Ford Otosan spent TL 4.2 million, Opet the platforms seeking solutions to the issue. certification scope was 85%. As of 2011, our spent TL 1.8 million, Tat spent TL 1.2 million, For instance, Arçelik, Aygaz and Tofaş joined Group Companies began to work on Tofaş spent TL 3.95 million, TürkTraktör spent the Climate Platform of Turkey established certifying the GHG emission values in line TL 1.7 million. and led by REC Turkey. Moreover, Koç with the ISO 14064-1 System Standard. In this Holding Group Companies are represented respect, for all Arçelik, Ford Otosan, Opet 2011 Environmental Expenditures and on the Turkish Climate Change Leaders’ and Tofaş facilities in Turkey; also for Aygaz’s Investment Ratios* Group at senior level. Yarımca Terminal and Tüpraş’s İzmir 7.45% Refinery, GHG emission calculations have TÜRKTRAKTÖR The Kyoto Protocol is by far the essential been verified according to ISO 14064-1 27.83% official document regulating the System Standard. ARÇELİK international climate regime and a Global 17.37% Climate Summit was held in Durban, South TOFAŞ All the related Koç Group Companies Africa to discuss how the new climate comply with the EU REACH Regulation and regime would be shaped as the first work on projects to ensure that their obligation period of the Kyoto Protocol ends suppliers also comply with it. Apart from that, in 2012. Levent Çakıroğlu, Koç Holding 5.42% the Group Companies abide by many local TAT Durable Goods Group President and Arçelik or international standards regulating the 1.06% CEO, represented Turkey as the term 0.41% YKB environmental impact levels of their OTOKOÇ spokesperson for the Turkish Climate products and environmental impact labeling OTOMOTİV 8.23% Change Leaders’ Group during the UN AYGAZ practices. 2.63% Climate Change 17th Conference of the OTOKAR Parties held with the participation of Environmental Management and 7.99% 18.63% Government representatives, international Investment Expenditures OPET 2.98% FORD organizations and NGOs from 190 countries. KOÇ INFORMATION Levent Çakıroğlu presented his views on the TECHNOLOGIES In an effort to realize the goals set for GROUP subject at a panel discussion titled "The Road further improvements, Koç Group * Tüpraş performance is not included in this chart. to Rio+20: Business Leadership Driving Companies allocate significant amount of Change" and also participated in the Global financial resources for environmental Climate Change and Emission Business World Day and spoke as a guest management. A portion of those funds is Management speaker in another panel meeting titled allocated to administrative and training “Carrying on with Action: Development for practices while a great deal of the funds is Caused by the surge in GHG emissions, the the Business World and Everyone”. used for investments and R&D studies climate change remains an important issue regarding product and process on the global agenda for 2011. The Further details regarding Koç Holding’s development. In 2011, a significant share in international efforts made to fight this approach to climate change and emission the Group Companies’ R&D budget of total problem during the reporting period still management can be found in the corporate TL 490 million was spent on projects focused seems to have fallen short of producing a social responsibility section at on reducing the environmental impact of consensus on a comprehensive plan of www.koc.com.tr. the products. measures meeting the expectations of the all parties involved. Koç Holding not only Environmentally-Friendly Practices at Koç *Number of facilities, which was 82 in 2010, decreased during the reporting period as a result of the sale of Koç.net. Yapı Kredi facilities are not included in this calculation. 23 Koç Group Corporate Social Responsibility Report 2011
203.5 3.37 63 89,140 TL MILLION MILLION GJ Total amount of environmental Total energy saved in Number of plants Number of saplings imimpactpact reduction and Koç GroupGroup certified with planted in 2011 as a result protectionprotection investments frofromm Companies duringduring 20120111 ISO 14001 in 2011 of the Group-wide KKoçoç GrouGroupp ComCompaniespanies iinn forestation works. 20112011
Koç Group Climate Change society. improvement and use of more efficient Strategy: • All types of technical support will be equipments; thereby enjoying 316,955 tons provided to suppliers for CO2e of reduction in GHG emission in 2011, accounting for 91% of the total Group Products: environmentally-friendly production and products. emission reduction. Three projects realized • Koç Group will emphasize environmental in İzmir Refinery during the reporting sensitivity on all of the products it • The Koç Group’s goal is to employ environmentally sensitive purchasing period, namely Boiler Feed Water (BFW) manufactures, will be transparent regarding Heat Reduction/BFW Header Change, the impact of these products on the criteria in its purchasing systems. Contribution to the Formulation of Increasing Efficiency in Boilers and environment, and will contribute to the Furnaces, Completion of Isolation Losses development of environmentally-friendly Environmental Policies: • It will work actively with CSOs and and Regular Maintenance of Steam Traps, product technologies. stand out among the others as those alone • Koç Group will carry out projects to government institutions, sharing knowledge and supporting the formulation of national reduced 49,939 tons CO2e GHG emission develop innovative products and create and saved TL 17.4 million. technologies that are more sensitive to the environmental and climate change policies. environment and more compatible with a • It will contribute to developments by actively participating in constructive The 2˚C Challenge Communiqué low-carbon economy in the areas it focuses Arçelik and Tofaş signed the 2˚C Challenge on. international policy making platforms. Innovation: Communiqué drawn up by the Corporate Operations and Production Processes: Leaders Network (CLN), along with over 200 • Koç Group will reduce GHG emissions • In order to develop creative and innovative methods that reduce climate corporate executives from different sectors and the negative impact on the in 29 countries, thereby reinforcing their environment in parallel with developments change impacts and are environmentally sensitive in terms of products, pioneering role in Turkey to fight the climate in the sector pursuing a continuous change. improvement approach by measuring the manufacturing technologies, operations and environmental impact of all of its operations business models, Koç Group will work together with Koç University, other Protecting the Quality of the Air and production processes. It will also be a Koç Group Companies’ operate in national pioneer in this regard. universities, relevant R&D organizations and centers, and it will contribute to an increase accordance with the parameters and quality • It will analyze “The Best Available values specified in emission permits issued Technologies” and make its production in the knowledge in our country regarding low-carbon economy technologies. by the Ministry of Environment and Urban processes compatible with these Planning. The emission values are measured technologies within the framework of a • It will work to develop new business models and new fields of business activity that are in line with continuous or periodic sampling, specific plan. using methods specified on the basis of • It will carry out projects to increase the innovative, creative and compatible with a low-carbon economy. parameters, such as SOx, NOx, VOC and use of renewable energy resources in its PM, pursuant to the Industrial Air Pollution production processes. Control Directive. Emission values are Suppliers and Customers: subject periodically to independent audits by • It will work to increase environmental accredited institutions as specified in awareness of suppliers, customers and regulations. Furthermore, these values are periodically monitored by the Ministry of
As a result of the improvement projects Ford Otosan owes the 1,320 tons of CO2e Environment and Urban Planning and the undertaken, the GHG emission of the Group portion of the total 2,065 tons of CO2e GHG Provincial Environment and Urban Planning Companies was reduced by a total amount reduction performance in 2011 to the boiler Directorates. As a result of these
of 348.6 thousand tons of CO2e despite the automation and waste heat recovery project measurements and evaluations, it is increase enjoyed in production during 2011. in its Kocaeli Facility, as well as, to observed that, company-based values are The aforementioned reduction sum is by completion of the project for improvement lower than the emission limits specified for
approximately 18 thousand tons of CO2e of the air-conditioning improvement the concerned companies and parameters. over the GHG emission reduction achieved through implementation of air quality in 2010 and the total sum of reduction sensors in the workshops. The Group Companies conduct continuous achieved since 2009 has exceeded 1.3 improvement projects regarding the related
million tons of CO2e. Thanks to those Tat, prevented 3,025 tons of CO2e GHG parameters in order to protect air quality. projects carried out, the total direct and emission in 2011 thanks to the energy For instance, Opet started a project in 2011 in indirect emission produced by the Group efficiency achieved through the use of more its Marmara, Körfez, Aliağa, Mersin and Companies in 2011 declined by 116.6 efficient equipments in the boilers, various Giresun Terminals to make the filling islands
thousand tons of CO2e when compared with process improvement and waste heat compatible with the filling from below the year 2010. recovery. Together with the studies realized system so that the volatile organic in various other plants during the year, 3,664 compounds can be taken under control
With its 162 energy efficiency projects tons CO2e of GHG emission has been while the product transfer risk can also be completed in 2011, Arçelik reduced GHG prevented. eliminated.
emissions by 10,679 tons of CO2e. Tüpraş, undertook 92 projects focused on the prevention of energy loss, process Environmentally-Friendly Practices at Koç 24 Koç Group Corporate Social Responsibility Report 2011
Otokar Plant
Efficiency at Koç Reduction in Indirect Energy million m3. Nonetheless, 12.7 million m3 of Consumption water was recovered and used back in Projects for efficiency not only contribute to production. Consequently, 20.5% of the water used in production originally came economic sustainability due to the cost A significant share of the energy from the recovered water. advantages they provide, but also play an consumption portfolio of the Koç Group important role in the improvement of Companies is composed of indirect energy environmental sustainability. In line with the consumption. Part of the indirect energy Total Water Withdrawal by Group Companies Koç Group Environmental Policy and Vision, consumption arises from procured energy our Companies implement projects, while another part consists of the energy 6.59% innovative practices and joint studies consumption arising from sub-contractor ARÇELİK focused on energy efficiency, resource productions, business travels and personnel 0.73% YAPI KREDİ consumption, waste management, recovery commuting. In 2010, Koç Group Companies 0.38% 0.72% AYGAZ and recycling. Energy management worked on efficiency projects to improve TÜRKTRAKTÖR 3.66% constitutes the most important aspect of FORD OTOSAN performance in these areas. 0.14% those projects because of its impact on the KOÇ INFORMATION climate change. Every year, great effort is TECHNOLOGIES Otokar has been implementing GROUP made to exceed the performance goals set improvement projects regarding the 0.28% on Company and Group levels. personnel commuting for the last three OPET years. The shuttles that travelled 2.2 km per 0.81% OTOKAR In spite of the significant production person on average in 2009, travelled 1.868 66.29% TÜPRAŞ 16.19% increase enjoyed during the period, the Koç km in 2010. Therefore, the energy TAT Group Companies achieved 3.37 million GJ consumption was reduced by 34.8 GJ. In 3.53% reduction in their energy needs in 2011 spite of the increase in the number of the TOFAŞ through the efficiency projects they employees using the personnel commuting implemented. During the reporting period, service in 2011, Otokar managed to reduce through improvements made in energy the total shuttle service distance travelled by Total Water Withdrawal by Source portfolio, total indirect renewable energy 100 km and travel distance per person by purchased increased 30 folds when 1,863 km. Hence the company improved its 10.25% compared with the previous year. This way performance by another 1 GJ. Although this MUNICIPAL WATER 2,930,823 m3 the GHG emission is reduced while the improvement accounts for a modest 0.15% need for energy is still met. The share of the 25.65% OTHER RESOURCES proportion in total energy and emission UNDERGROUND 43,608 m3 energy efficiency improvement in the GHG stock, for us, the personnel commuting WATER reduction performance in 2011 amounts to service optimization is an important practice 7,335,577 m3
347.6 thousand tons CO2e. area as it sets an example.
Since the Koç Group Companies operate in 0.01% Reduction Achieved in many diverse sectors, they use hundreds of RAINWATER 900 m3 Energy Consumption (million GJ) resources different from each other and water is no doubt the common and the most important resource among those. The 63.94% 2011 efficient use of the clean water resources, SURFACE 3.37 WATER which unfortunately are on decline due to 18,286,481 m3 2010 the increase in population and the climate 3.35 change, is one of the most material environmental performance issues. The 2009 main components of water performance for 2.30 our Group Companies are reducing withdrawal by amount, increasing in water 2008 1.69 recovery and recycling, diversifying the resources, and finally achieving higher quality in waste water discharge while decreasing the total amount. Water consumption performance tends to vary and depends on the changes in production amounts. That is why an increase in our total water consumption was observed in the year 2011 in parallel with the distinct tendency of increase experienced in our production levels. The total water consumption of the Group Companies therefore reached 49.3 Environmentally-Friendly Practices at Koç 25 Koç Group Corporate Social Responsibility Report 2011
348,6 256,5 THOUSAND TONS THOUSAND TONS GHGGHG emissionemissionss TotalTotal amount ofof wastes reduced by Koç GGrouproup recycled by Koç GGrouproup CCompaniesompanies in 20120111 CompaniesCompanies in 20120111
Koç Group Environmental Policy stipulates Koç Group Recycling Project Operational Entry and that the Group Companies must reduce the Decommissioning Practices waste produced as a result of their The efficient use of resources play an operations firstly at the source and recycle important part in reducing the impact on the Koç Group Companies engage in certain as much as possible. The waste that is not environment while ensuring the reuse of the pre-determined actions when opening a possible to recycle is disposed according to waste produced gets to be more important new operational site or decommissioning an the methods in line with the environmental day by day for achieving efficiency. existing one. A number of companies regulations, management standards and the Recycling not only reduces the need for perform this work using a check list. Our type of waste. Thanks to this approach, 93.1% new materials thereby creating economic fundamental principle is not to make any of the 275.5 thousand tons of waste value, but also eliminates the environmental negative impacts on the existing produced was recycled in 2011. impact caused by the waste. For instance, 1 environmental, social and economic value ton plastic bottles, which would take of an operational site when launching an 500-1,000 years to decompose in the operation; and when it is time to exit an Waste Water Disposal nature, if recycled, will save 146.5 GJ of operational site, to leave it only after energy. In the same way, 1 ton aluminum restoring the natural features that were Our fundamental goal regarding the waste bottles, if recycled, will save 16,000 litres of there when we took over, and preventing water management is to reclaim the waste water and 14,000 kWh of energy. In the light the decommissioning from having any water for production through recycling of this fact, Koç Group Companies launched environmental impact. practices. In 2011, 2.7 million m3 of water was the Koç Group Recycling Project in 2010 and recycled for production. However, it is not continued it in 2011 with a view to creating an Our operations may have both an possible to reclaim the entire amount of awareness of recycling among their environmental impact as well as a social and waste water. The waste water from the employees, ensuring the recycling of paper, economic impact. For example, thousands operational facilities undergo either glass, metal and plastic wastes according to of people are employed at these operational chemical or biological treatment processes a common standard and increasing the total sites, making a contribution to the local depending on their pollution values and sum of waste collected. As part of the economy. Consequently, the social and after it attains the quality norms specified in project, environmental awareness trainings economic impacts are evaluated as well as the discharge permits issued by public were provided for the employees through the environmental impacts when initiating organizations, it is discharged either to the Koç Academy Platform, various activities an operation or terminating one and an receiving environments specified or into were held to boost the motivation of the attempt is made to avoid all negative municipal waste water systems. In an effort Group Companies’ employees for impacts. Naturally, the general principles of to avoid any negative impact on the living volunteerism. Amounts of waste collected by the work that is performed in this regard are species in the natural receiving environment Group Companies were monitored while common, but the type of practice is shaped or on its biodiversity value, the quality auditing the recycling companies. Our by the nature of the sector in which the parameters of the waste water discharged Companies carried on with the projects to company is involved. Since Koç Holding is a are monitored and improvement projects increase awareness regarding the matter growing and developing organization, are undertaken. In 2011, 16.9 million m3 of and also became members of the Global start-up operations are experienced waste water arising from the operations of Recycling Network. frequently while decommissioning of the Group Companies was processed by the operations is rare and generally applies to waste water treatment units and discharged Within the scope of the project, the waste the certain units rather than a field. after complying with quality norms. recycling sum of our Group Companies and their emission reduction amount equivalence are registered and monitored through a common database. Hereunder, in 2011 our Group Companies collected back 1,600 tons of paper, 52 tons of glass, 32.3 tons of metal and 217 tons of plastic waste. The total sum of paper collected saved 27,200 trees while the collected metal waste saved 322,695 litres of petroleum products, the collected glass waste saved 5,200 litres of petroleum products and the plastic waste collected saved 3,037,000 kWh of energy. Thanks to the total sum of the waste collected, 52,978 trees were saved in total. Environmentally-Friendly Practices at Koç 26 Koç Group Corporate Social Responsibility Report 2011
TürkTraktör Production Plants
Efficiency Practices of Group and remote control air-conditioning and consumption was reduced by 12% and chemical Companies Promena saved 144 GJ thanks to the contamination was decreased by 90%. virtualization of the 6 servers. Arçelik recycled 18,600 m3 of water Through energy efficiency projects focused on through various projects implemented in Opet Lubricants Plant optimized the process redesign, use of more efficient equip- 2011. In the Washing Machine Plant, the blending timing, saving 33.9 GJ in energy. ments and prevention of losses and leaks, 4 use of the test water in the paintshop The terminals use discharge water in fire refineries of Tüpraş saved approximately 3.05 processes saved 12,000 m3 while the prevention water reserve, field washing million GJ of energy. cataphoresis tank anolyte system water and in pig operations, hence enjoying a recycling project saved 5,700 m3 of water; recovery ratio of 51%. Once the rain water recovery of the condensed water in the collection pool projects launched in Electronics Plant air-conditioning stations Mersin and Giresun Terminals in 2011 have to be used in the filling of the fire engine been completed, rain water will be and in the steam boilers saved 900 m3 collected in a single spot to be directed to water in total. 162 different energy the discharge channel and will also be efficiency projects implemented saved available for field watering. 13.7 million kWh of electricity, 1.8 Sm3 of natural gas and 142,820 m3 of air, Tat Karacabey Plant saved 1,638.3 GJ therefore amounting to 116,252 GJ in total energy thanks to the improvements made energy saved. 84 of those projects carried in evaporator serpentine unit and steam out focused on improvements in the exhaust turbine. Torbalı Facility undertook production processes while 32 were about steam boiler surface blow-off and flash electric equipment, 22 about lighting, 8 steam heat recovery projects, which about compressed air, 8 about engines, 5 resulted in 1,511.4 GJ of energy saving. about natural gas and finally 3 of them Mustafakemalpaşa Plant saved 26,418.7 of focused on improvements regarding energy through introduction of econo- air-conditioning and ventilation. As a mizer practice to the steam boilers and result of those efforts, the indirect GHG beginning to RO water use; 15,361.8 GJ through the heat recovery from the emission was reduced by 6,917 tons CO2e and the direct GHG emission was reduced surface blowoff and flash steam; 8,635.7 by 3,762 tons CO e. GJ through switching to natural gas for 2 the heating of guesthouse; and an Aygaz, Kırıkkale Filling Facility achieved additional 762 GJ through more efficient annual saving of 12.6 GJ electrical energy use of water feed pumps. Sek Milk Plant through modifications made in filled tank began to use the flash steam energy to entry lines in stock platform by shortening produce hot water and revised the the lines and decreasing the traction condenser groups, which led to 5,147.3 GJ loads of electric engines. The two air of energy saving. Karacabey Plant saved 3 compressors used to feed the tank filling 230,400 m of water through reuse of was replaced with a more powerful single water in the tomato paste can cooling 3 compressor saving energy, which led to machines; and additional 72,000 m by an annual saving of 66.15 GJ in electricity reusing of the water on the aseptic lines. used. Tofaş, saved 95,000 GJ in 2011 through 140 Ford Otosan İnönü Plant introduced more energy efficiency projects; thus efficient lighting fittings in the factory and decreased energy intensity by 35% during warehouse, more efficient electric last 3 years. By switching to the use of engines and steam boilers, soft start recyclable tanks instead of barrels which drivers in the compressor engines and create hazardous waste, thereby 137 tons achieved reduction in the heat loss from of waste has been prevented; and also 15 the hot water valves eventually saving tons of waste reduced through LDPE film 10,551 GJ of energy in total. practice on the barrels coming out from the pasting lines and treated as hazardous In 2011 KoçSistem data center replaced material. Thanks to the change in robot the uninterruptible power supplies with software, 4 tons of paste was collected to new and more efficient equipment, be re-used, hence reducing emission by 10 tons CO e. Through improvements improved the outdoor illumination and 2 consequently saved 1,153 GJ, while Callus made in surface treatment baths, water Samsun operation centres saved 594.5 GJ consumption and waste water creation with the introduction of the sensor lights were decreased by 25%, energy Environmentally-Friendly Practices at Koç 27 Koç Group Corporate Social Responsibility Report 2011
Ford Otosan İnönü Factory
Biodiversity and Environmental Development Projects All Koç Group Companies are responsible Projects for the preservation and Number of Saplings Planted by Year for preventing our operations from having development of forest lands, which any negative impacts on the physical decrease day by day, are institutionalized integrity of natural areas located on or operations for the Koç Group Companies near operational sites and on the living and are realized as part of the Group’s organisms inhabiting there. All Group environmental management while being Companies conduct risk assessment monitored through the sustainability 89,140 projects in order to fulfill this responsibil- performance system. Group Companies’ ity, taking precautions against these risks, interest in the issue is always revitalized by measuring and monitoring their environ- the periodically organized reforestation mental impact in a multi-dimensional campaigns held at the Group level. Group fashion. None of the operational areas of Companies, in return, plant thousands of 2011 Group Companies are located on saplings annually to support the starting of protected natural areas, special environ- new forests or to rehabilitate the mental preserves or RAMSAR sites as damaged forest lands. On both Group specified by the law or international and company levels, our most important 42,747 agreements. There are no areas or water project partner in such projects is the resources which have suffered a signifi- TEMA Foundation. In 2011, 89,140 saplings cant impact in terms of biodiversity value were planted in total thanks to the or population of species as a result of the reforestation projects conducted by our Group Companies’ operations. Group Companies. The total number of 2010 trees planted in the last three years, including 2011, exceeds 160 thousand.
Thanks to the reforestation projects carried out in 2011, Arçelik planted 6,500 65,000 saplings, Aygaz planted 1,116, Otokar planted 2,000 saplings, while Koç Information Technologies Group planted 2,000 saplings during Green Information Platform Project and additional 150 for 2009 New Graduate Program. Tüpraş, which planted 14,148 saplings as part of many activities undertaken throughout the year, also planted 1,945 saplings through TEMA Foundation in an effort to offset the CO2 1,194,020 emissions caused by the fuel consumption of vehicles used by the Headquarters.
Opet, as part of the Green Road Project which has been conducted since 2004 in 2008 cooperation with the Directorate General The wetland on the 5.4-acre plot inside for Highways and TEMA Foundation, Ford Otosan Gölcük factory site has a planted 26,425 saplings at 42 stations. biodiversity value as it is located on a bird Thanks to the project, so far 503,117 plants migration route. For this reason, the which are suitable to regional, climate 63,952 wetland was put under protection by Ford and soil conditions were grown at 613 Otosan to prevent it from being affected stations and on the clearings located by by operations and to ensure that the the municipalities. migration routes of these birds are not changed. An 8.6-acre plot created on a TürkTraktör planted 30,000 saplings in 2007 nearby site as a result of a settling that Antalya reforestation area. TürkTraktör occurred after an earthquake has been also donates saplings on behalf of its rehabilitated in cooperation with the TEMA customers within the scope of the project. Foundation. It was converted into a park Yapı Kredi Operations Management also open to visitors and employees after planted 1,600 saplings to celebrate the reforestation. birthdays of its employees. Environmentally-Friendly Practices at Koç 28 Koç Group Corporate Social Responsibility Report 2011
Arçelik Ankara Factory
Environmentally Friendly product uses ozone-friendly R600a take effect in 2012. Products with low energy Products at Koç refrigerant gas. The counter level A+++ consumption are tested by independent and refrigerators launched during the year have trusted institutions in line with EN50304, Koç Group Companies aim to reduce the a low noise level of 37 dBA, enjoy 60% in EN60350 energy consumption calculation environmental impact in every stage of the energy efficiency and feature R600a as standards and EN directive 2002/40/EC and product life-cycles. One of the most refrigerant gas. The new A+ joker counter test results validate values declared by important aspects of this is to reduce the level refrigerator enables the users to Arçelik. impact stemming from the consumption of convert freezer into cooler when they do those products. For that reason, every year not need it, hence saving up to 50% energy. In 2011, Arçelik began to produce more Group Companies conduct R&D and energy efficient TVs by using LED panels investment projects to increase the Arçelik 92104 PFEI Kaktüs, with its 6 litres of instead of LCD. The changes made to the environment friendly features of their water consumption, is among the world’s design of the product reduced the stand-by products and services, thus providing least water consuming dish washers and power below 0.5W. The R&D projects carried greener choices for their consumers. For works in A+++ energy class during standard out have cut down the energy consumption instance, thanks to the selection of the washing program and in A++ level during of the products when used by 16% while products and services provided by Arçelik, Eco6L program. The product saves 15% decreasing their stand-by mode energy use Aygaz, Opet and Koç Information Technolo- energy thanks to the Alumination™ isolation by 32%. As a result, 44,368 MWh is saved in gies Group in 2011, consumers saved 1.2 technology developed by Arçelik and total. The launch of unpainted cabin million GJ in energy. energy recovery from waste heat feature, application decreased the paint consump- while saving 14% water through water tion by 47%. In 2011 A energy class products Arçelik managed to develop tens of new recovery feature. If all the dish washers in were launched for the first time in products setting the best examples Turkey are replaced with Kaktüs, the total 40’’-46’’-55’’ sizes. By Eco-flower accredita- world-wide in all product segments as a energy saved will equal 146.9 MWh and the tion of 40”/46” model TV sets, Arçelik also result of its R&D projects carried out with a total water saved will equal 22 million tons became the first Turkish manufacturer to total budget of TL 18.13 million for the annually. In 2011, this product won Istanbul obtain this certificate. development of environmentally friendly Chamber of Industry Large Scale Corpora- products. In addition to that, the total energy tion Sustainable Environment Top Prize. Arçelik began to use glass lids for the consumption of its products decreased by During the year, in IFA Fair Arçelik also tumble dryers, therefore increasing the 9%. presented Beko DFN 71046 X30 A+++-10% recycling rate of the products and also and Bloomberg GSS 9482 X20, which are shifted them from A-30% class to A-50%. Arçelik upgraded 33 basic model refrigera- the world’s least energy consuming dish Arçelik produced 3885KT tumble dryer as tors from A class to A+, 27 basic model washers in their categories part of this development. The project led to refrigerators from A+ to A++ class and also the development of new products as well reached A+++ class in four main models. Arçelik washing machines featuring load boasting capacities of 7 kg and 8kg in A-10% This way, A+ refrigerator production in 2011 sensor technology are among the world’s and A-30% energy classes. reached 30% of the total production and most efficient products as they save up to there are now no refrigerators from B class 20% water and use A+++-10%, A+++-20% Arçelik achieved 1.5 dBA noise reduction and left in this product group. Starting from 1 and A+++-30% energy depending on their further energy efficiency thanks to the NTU July 2012, in line with the EU and Turkish capacities. Mass production began for the model compressor project. When the Republic regulations, all the refrigerators Nova washing machine, which reaches planned production figures for 2012 are Arçelik manufactures for these markets will A+++-30% energy level through Aquafusion taken into consideration, the NTU model be in A+ or superior energy classes. The sensitive water control system and brushless new compressors are estimated to save noise levels of the refrigerators were engine technology. Thanks to the load 16,425 GWh. significantly reduced thanks to the R&D sensor technology of Nova and the fact that projects and S54200B A++, together with it provides users with suggestions regarding Arçelik expanded the IE2 and IE3 industrial K54283B A+++, managed to be two of the the use of detergent and washing more engine product groups in 2011. The IE2 most silent refrigerators in their category. clothes together depending on the selection engines can save 60,720 MWh. The fact that 2488 CNG A+++ Kombi No-Frost refrigera- of the user for the level of dirt on clothes; the IE2 and IE3 engines are provided with tor, launched in the period, works 60% more detergent, energy and water consumption inverters, system solutions consuming efficiently than the A class No-Frost products of the machine is reduced. 20-40% less energy are established while with the same volume. 2488 CNG, which is products have already become compatible one of the products consuming the least During the year Arçelik improved the with the engine+inverter practice to be energy in its category, is capable of running Eco-Turbo function, thereby achieving the obligatory as of 2015 in line with the EC for 2.5 years with the same amount of lowest energy consumption, A-40%, in 640/2009 regulation. The fact that the electricity consumed by the A class products medium-large volume ovens. Produced with efficiency value for the asynchronous in 1 year. If all the refrigerators in Turkey are 100% recyclable plastic material and proved engines used in the dish washers has been replaced with 2488 CNG, the total energy to be the world’s least energy consuming increased from 55% to 60% saves 3,255 saved would amount to the 14.5 month oven in the world as a result of the market MWh of energy annually. energy production of the Ataturk Dam. researches carried out, CSM 62520 already Having a low noise level of 40 dBA, the complies with the stand-by regulations to Aygaz’s product for the auto-gas segment, Environmentally-Friendly Practices at Koç 29 Koç Group Corporate Social Responsibility Report 2011 Environmental Trainings Provided in 2011 26,022 15,303 30,946 PARTICIPANTS PARTICIPANTS PARTICIPANTS 67,837.3 39,111.1 97,016 MANxHOURS MANxHOURS MANxHOURS
TrainingsTrainings for CCompanyompany Trainings for Contractor Trainings for Social
saves up to 2.29% on fuel at a constant analyzes have been established at Marmara Environmental Protection at Koç speed of 120 km/h. The use of Aygaz Terminal. products in 2011 saved 509,240 GJ of Training activities aimed at increasing the energy. Otokar undertook various projects to awareness of its employees, contractors and develop the Kent LF and Kent H vehicles various segments of the society for environ- More than 100 engineers from Ford Otosan running on Euro4 class engines while setting mental protection along with environmental participate in the Global Duratorq® Engine the EEV emission class engines on these projects developed in various fields, Project launched in 2011. Aiming at a higher vehicles as a standard. The CNG fuel option constitute a great deal of the environmen- efficiency level with the low volume Euro5 version of the same vehicles are now ready tally friendly practices carried out by Koç class engine, the project ensures up to 17% for production while the EEV engine option Group Companies. saving on fuel thanks to the revisions made has been realized for Territo model vehicles on the Duratorq® engines while Euro5 class too. While decreasing fuel consumption, by We believe that the environmental protec- CO emission rates and 40% less NOx shifting vehicle engines from the Euro4 class 2 tion activities should not be limited to the emission rates are achieved. Manufactured to the EEV class, the most significant company and should be disseminated to the by Ford Otosan, Cargo® trucks with difference realized is the reduction in the society at large. That is why; Group Ecotorq® Eu5 engines produce 67% less hazardous gas emission, which has gone Companies implement environmental NOx emission and 95.5% less CO emission down by almost 50% and the improvement projects that focus on the wider society when compared with vehicles running on on the noise levels. Otokar completed the starting from the local community in their Euro 3 engines. Moreover, when compared work for the 0 emission electric version of place of operations. with vehicles running on Euro 5 engines, the 9m Doruk (Vectio) LE vehicle in 2011 they produce 17.5% less NOx and %93.7 less while the testing and validation processes 2011 Environmental Awards CO emission. for the vehicle are currently still underway.
Thanks to the goal of implementing the Tofaş began to use Euro 5 engines on the In 2011 Group Companies enjoyed the Green IT concept in the service infrastruc- vehicles exported to the European market appreciation of various institutions for their ture preferences, Koç Information as of 2011, thereby enjoying an improvement environmental practices, entitled for various Technologies Group Companies provide of 25% in hydrocarbon emission and 88% in awards. environmental-friendlier products when particle emission. The choice of the recycled compared with their equivalents. In 2011 material for the plastic parts of the vehicles After being rated in 2010 – first time in the over 1,130.4 GJ was saved on energy at led to the production of 37 different parts global white goods sector - to “golden” level KoçSistem datacenters thanks to the with 21 kg recycled material and as a result for energy efficiency in production with its 8 improvements achieved in the 900 tons of recycled material was used plants in Turkey, Arçelik, in 2011, scored air-conditioning, uninterrupted power annually. 35 kg reduction in material use another hallmark by its refrigerator, washing supplies and illumination systems along with was achieved as of 2011 thanks to the machine, cooking appliances and compres- the automatic “power saving” feature on the combination of the work launched in the sor plants through extending their success PCs covered as part of the desktop manage- previous years to make the vehicles lighter to a higher level and therefore leading the ment service. During the year, number of in weight as well as with the further company to be awarded the “platinum” level physical servers increased only by 16%, development of the projects for using for energy efficiency in production. while the number of virtual servers biodegradable plastic and rubber recovery. Meanwhile as a result of the projects carried increased by 126%. Services provided by Consequently, the GHG emissions from the out, one of the plants abroad managed to Promena such as e-Procurement, e-Tender, vehicles are reduced by 3.5 grams per reach the “golden” standard level. Arçelik e-Catalogue and Supplier Portals consumer kilometer. The CNG vehicles, manufactured was also awarded the top prize for its less energy than their equivalents as a result as part of the projects to diversify the fuel “Kaktüs” dish washer, second prize for the “Ekonomist” washing machine series in the of the infrastructure used. The 6 servers alternatives of the vehicles, reduce CO2 used in the e-Procurement service was emission by 20%. Start-Stop technology Large Scale Corporation Sustainable virtualized, hence the need for energy provides a reduction in fuel consumption Environmentally Friendly Product Category reduced by 144 GJ in 2011. The projects and emission by 8-10% for the gasoline and was also awarded the second prize for carried out by the Callus Samsun service vehicles and 4-6% for the diesel vehicles. In its “Standing United for Education” in the location led to saving 594.5 GJ on energy. In addition to that, various projects have been Large Scale Corporate Social Responsibility 2011, Koç Information Technologies Group launched for bioethanol vehicles and the Category of the Sustainable Environmentally provided services demanding 1,889 GJ less use of renewable energy in drive comfort Friendly Product and Practice Competition energy for its customers. features held by Istanbul Chamber of Industry. Beko DSN6634 FX dish washer, produced by Consumers preferring Opet‘s product, TürkTraktör managed to upgrade the Arçelik, proved itself to be a “Test Champion” Adblue® improving fuel economy by 2% for engines of the 77 models manufactured in 3 in the categories of quality, environmental diesel vehicles, saved 81,859.8 GJ in of fuel different series from Tier 2 to Tier 3 emission impact and ease of use as a result of the in 2011. Apart from the fuel economy, levels as a result of a project carried out in tests carried out according to many criteria by Stiftung Warentest (StiWa), the most Adblue® also decreases the CO2 and SOx 2011 to reduce the emission levels for the emission significantly. An Adblue® produc- 8000 series. prestigious independent testing and tion facility with an annual capacity of 10,000 research institute in Germany. Finally, as a tons and an Adblue Laboratory for product result of the ATLETE Project carried out by Environmentally-Friendly Practices at Koç the CECED and European Commission for 30 Koç Group Corporate Social Responsibility Report 2011
Green Information Platform - Koç University "Responsibility Now Before the Resources Cease" Conference
the testing of the energy efficiency of Practice, and finally was one of the finalists During Environmental Week in 2011, products, three different models of Beko from Turkey in the Management Category of TürkTraktör announced the results of Waste refrigerators turned out to be among the the EU Environment Awards Project Recycling Competition which was initiated few brands complying with the declaration organized in cooperation with REC Turkey on the 23rd April National Sovereignty and for the correct labeling of products. and TUSIAD. Children’s Day in order to raise environ- mental awareness among children of “What will the Weather Be Like Tomorrow?” During the 12th Industrial Energy Sufficiency employees aged 7-12. The projects running project undertaken by Aygaz received the Project Competition (SEVAP) organized by in the competition were assessed by a jury following awards: British PR Excellence the Ministry of Energy and Natural and the children were awarded at a Awards – Corporate Social Responsibility Resources, Tüpraş İzmir Refinery won the Summer Festival with their families. Category Grand Prize, International Stevie top prize for the SEVAP-3 Category while Awards – Environmental Responsibility in Tüpraş Batman Refinery won the top prize Happy Wastes: Packaging Waste Parsing Europe Category High Honour Award, for the SEVAP-2 Category. Izmit Refinery Movement at Aliağa International PR Association -Environment received Certificate of Appreciation as part Within the scope of the Happy Wastes Category- Golden Globe Award, Direct of the 17th Şehabettin Bilgisu Environment Project organized by Tüpraş, various Marketing Communicators – Roadshow Awards organized by Kocaeli Chamber of activities were held in 2011 reaching over Category Third Prize and finally Istanbul Industry in recognition of the refinery’s hard 5,700 students. 8.5 tons of packaging waste Chamber of Industry – Large Scale work for the prevention of environmental was collected leading the campaign to save Corporation Social Responsibility Category pollution. 200,000 m3 of water (accounting for daily for Environment Grand Prize. Aygaz water demand of 200 households), 76,000 Safranbolu Filling Facility also received the The Green Information Platform liters of petroleum products, 900 m2 of Environment Award handed by the Gover- Launched by Koç Bilgi Grubu in 2008, the forestland and thousands of trees. norship of Karabük. Green Information Platform reached over 30 business partners and volunteers as Flora Project In 2011 Ford Otosan received the Third Prize many as 5,000, therefore advanced to be Tüpraş Kırıkkale Refinery launched the Flora in the category of Large Scale Corporation the Environment Platform of Turkey. The Project in cooperation with the Kırıkkale Sustainable Environmental Friendly Practice platform has so far conducted over 15 University Environmental Issues Practice and in the competition held by Istanbul Cham- different projects and in 2011 organized an Research Centre along with the participation ber of Industry while Ford Otosan İnönü environment conference titled “Responsibil- of 50 volunteers to identify various plants Plant received the Şehabettin Bilgisu Award ity Now before the Resources Run Out” in and saplings grown and planted since the for Environment, handed by the Minister of cooperation with Koç University, on the establishment of the Kırıkkale Refinery. Environment and Urban Planning Erdoğan World Environment Day and Environment Once the project has been completed, the Bayraktar. Apart from that, Ford Otosan also Protection Week. The business and information will be published thanks to the won Adnan Şener Special Award in Environ- economy leaders met academicians, NGOs, assistance of the TEMA Foundation. Tüpraş mentally Friendly Product category with its artists and journalists during the conference. employees planted 98 ornamental plants “Ecotorq Engine Project”, and also won the Ali Y. Koç, Koç Holding Board Member, also and saplings thereby launching Tüpraş Rock Corporate Social Responsibility Jury’s participated in the conference featuring Garden in cooperation the TEMA Foundation Special Award for its “Sharing Environmental sessions under three different titles in the and Kırıkkale University Department of Awareness” in the competition held by economic, academic and social categories Biology. Within the scope of Tüpraş İzmit SEK Istanbul Chamber of Industry, hence to discuss the protection of the natural Nature Activities Club’s “Summer Grows receiving four environmental awards in 2011. resources, suggestions for environmental Fruits and We Collect the Seeds”, 1 million problems with participants from the private fruit seeds were collected in 2011 with the The Green Information Platform from Koç sector, civil society, universities and every participation of the Tüpraş HQ and İzmit Information Technologies was awarded with segment of the society. Refinery employees. The seeds and the 2 Friend of the Environment Certificate during million tree seeds provided by the İzmit the Global Warming Convention held by the Tofaş and TürkTraktör Support Refinery Greenhouse employees were Economy Journalists Association in 2011. Environmental Awareness delivered to the TEMA Foundation Kocaeli In 2011 Tofaş,made the e-training platform Branch to be grown into seedlings. Opet’s “Green Road” Project won the Third which was developed for increasing Prize in 2011 in the Large Scale Corporation environmental awareness among employ- Infinite Blue Environmental Social Responsibility ees, available for the MLMM Fiat Laboratory Infinite Blue Project, organized and carried Category in the competition held by Istanbul students. In addition to participating in the on by Yapı Kredi in cooperation with Chamber of Industry. WWF World Hour organization with its TURMEPA and the Ministry of Education since facilities in Istanbul and Bursa every year; 2006, aims to increase the awareness of the During the year, Tofaş was awarded in the Tofaş also supported the WWF Turkey’s Soul primary and secondary school children for competition held by the Ministry of Energy Campaign with its Fiat brand, which was the protection of the natural resources. and Natural Resources in the category of declared once again to be the Completed in 2011, the project reached 6.6 Energy Efficient Industrial Facility, won environmental-friendliest car in a row million primary and secondary school Necati Arıkan Special Award given by according to the JATO results and which children, giving them Infinite Blue training in Istanbul Chamber of Industry in the meanwhile boasted the product group with 29 provinces. category of Large Scale Corporation the lowest CO2 emission levels as well. Environmentally-Friendly Practices at Koç Sustainable Environmentally Friendly 31 Koç Group Corporate Social Responsibility Report 2011
Ethical Values at Koç
“Our principle is to be fair in all our relationships, to act in good faith and understanding to ensure mutual benefit and to comply with the law and ethical rules.” Our Founder Vehbi Koç
The fact that the Koç Group is the largest Our major reference in terms of fighting auditors exclusively certified as CFE- taxpayer in Turkey coupled with the corruption is the “Koç Group Code of Ethics Certified Fraud Examiner. Besides, auditors importance Group Companies place on and Business Conduct”. All newly-hired are supported for their CIA Certifications transparency is a reflection of our employees are informed on this code of (Certified Internal Auditor) in order them to unwavering commitment to the law of the conduct which is an attachment of the possess a globally acknowledged know-how countries we operate in and the standards personnel guidelines. The Code of Conduct and experience. The Koç Holding Audit required by international trade. All Koç is also available for the employees on the Group Presidency currently employs 6 CIA Group Companies deem fulfillment of their web. certified auditors. legal obligations and maximization of benefit for their stakeholders as their primary Implementation of the Code of Conduct and responsibility. An evergreen and efficient monitoring the process of compliance with Business Ethics in the Supply Chain control mechanism is maintained the code is handled by the Koç Holding Group-wide in order to discharge this Ethical Behavior Board and the Ethical Koç Group Companies are also sharing the responsibility. In addition to the preventive Behavior Boards formed separately in our ethical values they are devoted to, with their approach of the procedures created within Companies. In case of a need for value chains and providing support to the the scope of the control system, intended amendments to the Koç Group Code of diffusion thereof, subscribing to pioneering audits are conducted with reference to the Conduct, the Koç Holding Ethical Behavior applications in the field of business ethics. risk of all types of misconduct in our Board submits necessary update and Number of active suppliers of the Companies. amendments to the Koç Holding Board of Companies within the reporting scope, is Directors for approval. 6,670 during the reporting period. 17% of Audit processes are conducted by the Koç these suppliers have been subjected to Holding Audit Group Presidency reporting Behavior that is deemed suspicious can be supply chain audits during the reporting directly to the Koç Holding Chairman. A reported to the Koç Holding Audit Team period. The rates of these audits and significant number of Group Companies managers by contacting them via their assessments have reached to 40% in Arçelik also have their own internal auditing direct lines. The goal is to ensure that and 46% in Koç Information Technologies function. In compliance with International company employees can submit their Group. The purpose of the audits consists of Auditing Standards, Koç Holding and Group allegations directly and free of any sharing the business conduct of Koç Group Companies’ internal audit departments influence. Companies with its business partners, essentially perform five basic auditing thereby diffusing around the value chains processes; such as Risk Management, Actions to be taken in the event of any the high standards they possess. Although Processes, Financial Statements, Regulations possibility of corruption in the Group methods of audit differ according to the and Compliance, Fraud. Companies have been specified in Koç sector where the company is positioned, as Group procedures. According to our well as the goods or services supplied; Other processes, implemented throughout procedures, when there is any suspicion of working conditions provided to the suppliers’ the Koç Group for the purpose of preventing corruption, the manager of the concerned employees, any condition that might fraud in addition to the audit processes are: department informs the company’s General influence the product quality, as well as the Manager on the situation. The company’s company’s pattern of managing • Company results are monitored by General Manager then immediately informs environmental impacts are amongst the conducting analytical reviews with the Koç the Business Unit Presidency and the Audit issues attended to in the audits. In year 2011, e-Audit software developed by Koç Holding. Group Presidency that they report to at Koç contracts of 8 suppliers have been • Employees working in the financial Holding. Corruption that most likely involves terminated as they failed to fulfill the departments of the Group Companies are material damages of less than 10,000 USD is required standards. Koç Group Companies provided with applications such as the Audit investigated and reported by company are planning to persist with their audits in Portal and Koç Audit software for increasing internal audit teams while other instances of the supply chain at an ever increasing pace. their knowledge on regulations, best corruption are reviewed by the Koç Holding practices and Koç Group principles. Audit Group Presidency. The results of the • The audits and reviews conducted corruption review are conveyed to routinely by independent audit companies concerned senior management. give Group Companies an outside perspective regarding international auditing The following issues are of the utmost and risk management standards. importance in the process of researching • Our Companies with global partners suspicion of corruption: benefit from and implement not only our • Gathering all of the facts surrounding the Group’s principles, but also the knowledge issues as soon as possible and experience of foreign partners in terms • Maintaining confidentiality of codes of ethics. • Following the necessary legal process • Informing public authorities or In 2011, all the audits conducted by Koç stakeholders if necessary. Holding and Company Internal Audit Teams In order to enhance efficiency in fraud included audits related to the fraud. audits, Koç Holding currently employs 2 Ethical Values at Koç Ethical Values 32 Koç Group Corporate Social Responsibility Report 2011
Risk
17% Fraud Process AUDIT
Percentage of Active Suppliers Subjected to Regulations Financial Supply Chain Audits & Statements Compliance
Responsible Advertising and Product Information Marketing Providing the best possible information to our consumers concerning our products is a Koç Group Companies hold a primary area of responsibility for all Koç Group Companies. At the core of the ethical significant share both at domestic business concept of our Companies lies providing accurate, reliable and timely markets and abroad regarding the information to all stakeholders concerned therewith. Under our Companies providing sectors that they operate in, so goods and services to large number of consumer groups in different sectors, product advertising and other marketing notifications are prepared with a scope and diligence far beyond legal obligations. communication tools, as well as their proper use, are extremely important. In parallel to the requirements of their relative sectors, all companies ensure that their Through brand communication and product information reach their consumers through various methods. Differing sponsorship activities based on the 4 according to the product types; product contents, usage instructions as well as integral values of Koç Brand, which are environmental impacts are included in the product information. In 2011, our Leadership, Optimism, Solidarity and Companies within the reporting scope, have presented their customers goods and Value Generation, it is aimed to services under 1,360 different groups, all of which include product information details. enhance the level of social While information regarding 56% of such product portfolio is provided through media development and awareness as well to such as the company website or labels on product packaging, in others such data are upgrade our corporate reputation in provided to the users directly by the respective companies. parallel to such improved public consciousness. Product Labeling at Aygaz Blue Information Card placed around the valve of the cylinder, a sector leading In this regard, our Group acts in practice of Aygaz, is providing its consumers information with respect to correct and accordance with the ICC (International safe use of the product, including action to be taken in cases of emergency as well as Chamber of Commerce) Principles of contact details for Aygaz. Blue Information Card reaches the customer with warnings of Advertising Practice and the Advertising “do not detach this card from the cylinder” and “kindly read for your safety”. Self-Regulatory Board’s guidelines Consumers are further able to receive any information they desire on 24-hour basis when engaging in advertising and from the Aygaz website, as well as from Aygaz Service Line. Besides and further to the promotional activities. comprehensive trainings taken throughout the year by dealers and their service personnel distributing cylinders, consumers are likewise acknowledged within the These principles essentially cover the Training Bus, and caused to attain a consciousness regarding protecting their own following issues: safety. Aygaz is carrying out its mission of delivering its products to the consumers in the safest manner possible, under the same consciousness for all of the products. • Ethical compliance • Integrity Product Labels at Arçelik • Social responsibility Labels on Arçelik products besides relating the superior features of such product to the • Truthfulness (not being misleading) customers, also caution them with respect to specific risks borne by the same. Care is • Advertisements that are legal and taken that labels are understandable for the consumers and positioned at places that comply with regulations; are easily visible. In Arçelik, warning labels on the products are checked at the end of • The ability to prove the accuracy of the manufacturing process by specific units. Process of labeling, attended with utmost descriptions, claims or visual depictions, care at Arçelik, is involved with pioneer practices to that effect. which are used in marketing communications and can be Product Information at Opet documented Opet shares detailed information such as product content, product use, environment, • Not disparaging, not benefiting health and safety, with its dealers as well as final consumers, through its website unfairly from business reputation, not (www.opet.com.tr) and kiosks at the filling stations. On Material Safety Data Sheets imitating (MSDS) available in the website, information like contents of fuel products, description • Respecting personal rights of any possible hazards, and similar information are shared with the consumers.
Due to its ability to provide a universal Besides, upon their request, consumers are provided with fuel-tank cap sticker of the and measurable environment for product they prefer for their vehicle. Furthermore, customers are kept informed under dialogue, the utilization and Fuel Assurance System (YGS), and while taking delivery of their brand new Ford or Fiat dissemination of the digital media in vehicles, they are provided with the information booklet with respect to the product communications with both internal and and its use. external stakeholders is given weight throughout the Koç Group. Usage of Updated versions of fuel product prices according to the most recent price changes are new media is incorporated into the Koç communicated with consumers on the website as well as the boards at the filling corporate identity guidebook, in order stations. Furthermore, information with respect to the method of pricing and fuel pump to define the basic principles for prices corresponding to the previous period are also published on the Opet website. maintaining a specific quality and
standard. at Koç Ethical Values 33 Koç Group Corporate Social Responsibility Report 2011
Social Development at Koç
“I live and prosper with my country.” Our founder, Vehbi Koç
Being one of the most sensitive companies since 1999. Being Turkey’s only place in the culture of the Koç Group, to social issues the Koç Group’s goal is to post-graduate nursing education and among all members of the Koç family. increase the level of prosperity and social research center, SANERC provides creativity in the geographical areas where it opportunities for graduate nurses to update While “For My Country” Project aims at the operates and to contribute to social their knowledge and skills in line with the building blocks of the Koç Group, its progress in a manner that conforms to the advanced nursing practices, and continues employees and dealers to apply their skills expectations of its stakeholders. Koç Group its activities by organizing seminars, training of entrepreneurship in the field of social members devote their experiences and programs and giving consultancy services. responsibility, it also builds bridges between knowledge acquired in different sectors, in the individual, company and the society in order to generate collective wisdom for the Vehbi Koç Foundation (VKF) terms of responsibility. In the first two years solution of social problems. As a product of of the “For My Country” Project, dealers in Since its establishment, the Vehbi Koç this collective wisdom, Koç Group has the Koç Group were encouraged to produce Foundation (VKF) has worked to set an initiated long term and innovative projects in solutions to the problems they identified example for the best in the fields of Turkey, such as “Vocational Education: A locally. In the following years of the Project, education, health and culture through its Crucial Matter for the Nation” (MLMM) and in order to combine this awareness of programs and centers of excellence. In “For My Country”. Based on the principle of dealers with the institutional power of the 2011, Vehbi Koç Foundation continued to doing what has not been done before, Koç Group, our dealers and companies make a difference in the society through realizing problems that have been started to implement projects on common the programs it runs from its headquarter overlooked and developing projects to teams. as well as through its affiliated institutions. overcome them, Koç Group’s social development investments have continued at In 2010 and 2011, together with the Turkish full speed during the last reporting period as VKF INSTITUTIONS Red Crescent, “For My Country Project” has well. Together with projects they implement focused on the aim of raising awareness in in the fields of education, arts and culture, Education the society on the importance of blood cultural heritage, health and environment, Koç School (High School 1988, Elementary donation and raising the numbers of our Group also supports the activities of civil 1998) regularly blood donating volunteers. As a society organizations, and plays an active Koç University (1993) result of the campaigns organized by the role in our country’s progress, in line with Koç Elementary Schools (1998-2008): On Koç Group Companies and dealers, 89,451 our founder Vehbi Koç’s words, “I live and the occasion of the 75th anniversary of the people have been informed about the issue prosper with my country.” In the projects Turkish Republic, the Vehbi Koç Foundation and 71,733 units of blood donation have they support, our Group Companies pay built 13 elementary schools across Turkey. been received to give hope to 250,000 lives attention on long-term quality, social The project was further extended to 17 as of December 31, 2011. With these benefits and whether they fulfill our schools with the addition of 4 new schools numbers, Koç Group has carried out the stakeholders’ expectations. between 2006 and 2008. largest donation of blood stock to the Red Crescent. Koç Provides Support for Health Health Semahat Arsel Nursing, Education and Blood donor acquisition campaigns have Research Center (SANERC, 1992) been enriched with various local works in Based on Vehbi Koç’s words, “If you don’t VKF American Hospital (1995) 2011. Our dealer in Mersin, which donated a have health, you don’t have anything,” the Koç University School of Nursing (1999) minivan to the Red Crescent to serve as a Koç Group considers health to be one of its Koç University School of Medicine (2010) mobile vehicle and our dealer which had a top priorities in the area of social health care center built in Gaziosmanpaşa responsibility. In addition to the major Culture are examples to these local practices. investments that the Vehbi Koç Foundation Sadberk Hanım Museum (1980) Otokar donated a full-fledged blood has made in this field, our Group Vehbi Koç and Ankara Research Center donation bus, designed according to the Companies also contribute to improving the (VEKAM, 1994) needs of the Red Crescent. infrastructure of our country’s health Suna-İnan Kıraç Research Institute for services by the projects they implement Mediterranean Civilizations (AKMED, 1996) The project was recognized in its first year as every year. Antalya Kaleiçi Museum (2000) the most creative project idea by the Koç University Research Center for Association of Private Sector Volunteers Vehbi Koç Foundation Anatolian Civilizations (ANAMED, 2005) (ÖSGD). It has developed over the years Vehbi Koç Foundation Nursing Fund ARTER (2010) and received the “Most Successful Volunteer supports the education of nursing school Project” award from ÖSGD in 2011. The “I am students by providing them with scholarships For more information on VKF institutions Donating Blood for My Country” campaign, every year. This fund also supports special and 2011 activities you can visit as part of the “For My Country Project”, vocational development programs run by www.vkv.org.tr. received the “Most Successful Social nurses themselves. Responsibility Practice” award under the For My Country “Corporate Social Responsibility- Health” In order to raise modern, exemplary and “For My Country” Project was launched in category, given by TÜHİD (Turkish Public self-confident nurses, Koç University School 2006 to promote an understanding of social Relations Association) during the 10th of Nursing has been providing professional Golden Compass Awards ceremony.
Social Development at Koç responsibility, which holds a very important applied nursing education to its students 34 Koç Group Corporate Social Responsibility Report 2011
71,733
Total units of blood donated via For My Country Project in 2011
For My Country Campaign Bus (Otokar)
Implementation of Employee Koç Companies Support Health Tat Supports Health Volunteerism in “For My Country” Tat has provided food to the Lösev Children Aygaz Supports Diabetic Children with Leukemia Village, and the Life Without “For My Country” has been built on a Since 2004 and during the last reporting Obstacles Foundation. volunteer management system that consists period as well, Aygaz has been supporting of different pillars due to its the Association of Diabetic Children and Koç Supports Education multi-stakeholder structure. Koç Holding Adolescents, an association whose purpose is undertakes Project design and to help diabetic children learn how to live The way to endow our young population with implementation while Project operations are with diabetes and help educate families the skills necessitated by the global economy conducted by two different pillars: Koç Group about diabetes. In 2011, 100 diabetic children of our day that rests upon knowledge and Companies and dealers. attended the Diabetic Children’s Camp, held technology requires education and training. in Gebze. Quality of education, access to education and Dealer Application: With a distribution equality in education are important problems network of 10,000 dealers, which makes it the The 19th Diabetic Children Camp hosted the of our education system. In order for Turkey most extensive in Turkey, the Koç Group aims seminar for the officials of the Turkish to sustain its economic development, to promote social responsibility and support Aeronautical Association. In our country increase its level of welfare and for its youth local development in the dealer network where approximately 20 thousand diabetic to acquire the necessary skills and through the "For My Country" Project. The children live, Aygaz helps raise awareness on knowledge to transform into an information dealers who are responsible for carrying out the subject. Diabetic children from all over society, funds reserved for education should the projects in every province and providing Turkey attend the camp without any cost and be increased and the reform in education coordination between the Koç Group dealers understand that they are not alone, while has to be accelerated. The support of the are called “For My Country Ambassadors”. learning how to live a happy life with private sector is crucial at this point. In “For My Country Ambassadors” execute the diabetes. Aygaz has shown its sensitivity in the addition to the Koç Group Companies’ social project’s provincial aspects in accordance field of health also through the donations it responsibility projects in the field of with a local guidebook prepared by Koç has made to the Cerrahpaşa Faculty of education, the Vehbi Koç Foundation, since Holding. As an element that boosts dealer Medicine, to the Six Dots Foundation for the its establishment, has been providing young participation, Company Regional Managers Blind, and to the campaigns for Somalia that people with scholarships for education and provide support in terms of monitoring and were organized by the Disaster and has been posing exemplary models to the encouraging consistent participation in Emergency Management Presidency of the society with its education institutions that are campaigns conducted locally, sharing Turkish Prime Ministry. aimed to be centers for excellence. information and experience regarding the project and promotion of the concept of Clean Toilet Campaign from Opet Vehbi Koç Foundation volunteerism. In the scope of Opet’s Clean Toilet Campaign, The Vehbi Koç Foundation provided which has been carried out since 2000 and is scholarships through its main headquarter Company Application: Work in this pillar, one of the most long-termed societal and affiliated institutions to approximately which aims to ensure participation in development projects in Turkey, in 2011, 10,000 students in the 2011/2012 academic volunteer work with the more than 80,000 86,320 manxhours of training were given to year, which makes a total of over 43,000 employees of Koç Group Companies, is 23,124 people in 41 schools in İstanbul, students since its foundation. In 2011, the VKF executed by the Directorate of the Koç Gaziantep, Niğde, Bursa, Şanlıurfa and Uşak. has increased its quota for scholarships in its Holding Corporate Communications, and the As of this year, Opet Training Team composed Endowment Fund in order to reach more Directorate of the Koç Holding Human of 37 people travelled 7.5 million km’s to give successful and needy students. As a result of Resources, as well as by Company Human trainings to more than 5 million people. this initiative, the number of universities Resources and company communication receiving scholarships from the VKF has departments. A social responsibility project for clean toilets, increased to 10. hygiene and economical use of water has The number of ambassadors and been initiated with the cooperation of SASKİ Through its “Anatolia is Reading” Project it companies that have participated in the Directorate General, which carries out the initiated in 2011, the Foundation aims at "For My Country" Project since 2006 are Sakarya Metropolitan Municipality water and providing book donations to primary and provided below: sewerage services, and Opet. The project, secondary school libraries in Anatolia, which encompasses the 1st grade, preschool beginning with the provinces with the lowest For My Country Companies Participating and kindergarten teachers and students of income levels. This project will donate sets of Ambassadors in the Project schools that are within the borders of the 20 books chosen from among the 100 Basic Works list prepared by the Ministry of 2006 81 43 Sakarya Metropolitan Municipality and under the conduct of the Sakarya Provincial Education, with assistance from Yapı Kredi 2007 81 30 National Education Directorate, is planned to Arts and Publishing, to the schools in greatest 2008 81 22 continue throughout the year 2012. With this need. In 2011, 29 secondary and 200 primary schools in Hakkari received book sets as part 2009* 81 - collaboration, Opet transfers its experience in the Clean Toilet Campaign, which of this project. 2010 121 49 continued unabated for 11 years and 2011 135 46 expanded in volume day by day, to the
* No companies were involved in 2009. Sakarya Metropolitan Municipality. Social Development at Koç 35 Koç Group Corporate Social Responsibility Report 2011
10,567
Total number of vocational high school students reached by MLMM Project
Koç Group MLMM Project
The “Model School” Project, initiated by the Vocational Training Protocol” which was second phase of the MLMM Project was VKF in conjunction with the Istanbul signed in 2006 between the Ministry of initiated in 2010 so as to disseminate Governors’ Office of Education, selected a Education and Koç Holding. The Ministry of “School-Workplace Partnership Model” at school in Beykoz to serve as a model for Education has been responsible for the corporate, sectoral and national levels other benefactors. Once off the ground, the selection of schools to be supported and through promoting its benefits. The project will include a nursery school with a informing the community, while Koç Holding corporate sustainability of the Project was capacity of maximum 270 students and a has been responsible for provision of ensured by shifting the scale of the project primary school with a capacity of maximum education scholarship with internship from Holding level to Koç Group 720 students. The Project will provide the opportunity to 8,000 vocational high school Companies. In accordance to their needs schools with modern facilities and means so students and giving priority to their assessments in terms vocational education, that they become environmentally friendly, employment by the support of Vehbi Koç the Group Companies started to develop self-sufficient units with their own sources of Foundation. In time, 264 vocational high their own programs. After Tofaş Fiat, Tüpraş electricity and water, and they set an schools and over 8,000 vocational high and Ford Otosan laboratories, in 2011, example for student - parent - teacher - school students in 81 cities, NGOs, 21 Koç Arçelik and TürkTraktör started their own administration relations. Group Companies in different sectors and in sectoral laboratory programs in the different scales and over 350 volunteer vocational high schools. Otokar built up a Another project conducted by the VKF in employees participated in the project. welding workshop for the intern students 2011 was the “Hand-in-Hand for within the company. Ford Otosan opened Development” program. This program As of 2011, the Project results exceeded the the Cargo Education Center in İnönü brings the administrators and teachers at initial expectations. Going beyond the initial Industrial Vocational High School. By the end VKF Koç Private Primary School and High target of 8,000 students, 8,118 students were of 2013, 13 Koç Group Companies from School, and the 17 primary schools provided with scholarship. Moreover, the different sectors plan to initiate their own established through the support of the professional and personal development of projects. Foundation together for a motivational and 10,567 students at total has been supported developmental program. Workshops on through scholarship, laboratories, coaching In order to extend the Model to different Differentiated Education and an support, project contests and NGO trainings sectors and encourage sectoral inter-institution sharing of content were provided throughout the Project. Despite partnerships, a guideline named carried out. Meetings were held between high level of drop-out rates and low level of “School-Workplace Partnership at school administrators and Vehbi Koç enrolment rate of girls into the VHSs, the Vocational Education” was prepared with the Foundation representatives to determine Project managed to achieve 43% ratio in support of the YADA Foundation. With this the needs of the 17 schools and how they terms of female grantees. Additionally, 80% guideline, it is aimed to provide support to could be improved. of the scholarship students who needed the young people’s personal and internship completed their internship within professional development and also to Vocational Education: A Crucial Matter for the Koc Group. The Project also encouraged improve the infrastructure and the content the Nation Project (MLMM) the grantees to continue to their vocational of the vocational training. Besides the Koç Group has taken it as a mission to training. launching of this guideline to the public mobilize its resources around the issues of opinion, the web portal formed for the inequality in opportunities for education and Within the scope of MLMM Project, development of the partnerships between unemployment of the youth, which stand as collaboration is developed between the schools and companies will also go online in an obstacle to Turkey’s social and economic companies and the vocational high schools 2012. development. Accordingly Koç Group that provide the relevant training, so that initiated “Vocational Education: A Crucial while the employment of young people and Finally, in the context of Project, the “Quality Matter for the Nation” Project (MLMM) in the quality of vocational education is of Vocational Education and Training” Project order to solve the problems of low increased, the companies gained qualified was initiated in partnership with Educational enrollment rates in secondary schooling, human resources. The content of these Reform Initiative in order to provide the gradual weakening of the credibility of collaborations extended to a variety of topics government and private sector with vocational training, inability of youth to throughout time, due to the needs and evidence-based policy suggestions to reach opportunities to live up to their opportunities held by the schools and the improve the quality of vocational education, potentials, rising unemployment and the companies. This structure developed in the to create sustainable links between lack of qualified workers in the industry, all Project is named as “School-Workplace productive employment and vocational of which have been identified to share a Partnership Model” and includes education and to flourish partnerships. common denominator, that is “vocational components such as scholarship, Within the scope of the project, a series of training.” MLMM has been initiated to raise curriculum, laboratory, internship, personal researches with the guide and opinions of awareness about the importance of and professional development and the Consultancy Board that is formed by the vocational training at all levels of the society, employment supports. At the basis of this public, private and civil society and to plant the seeds of cooperation model lies the sector-based collaborations representatives were realized. As a result of between public and private sectors by developed between the vocational high these researches, a complementary and showing leadership in this area. schools and the companies and the bridges summarizing “Quality Strategy in Vocational built between education and business world. and Technical Education Document” has MLMM was initiated under the scope of “The been prepared. In 2012, it is aimed to share Collaboration for Development of As a result of all these achievements, the this document with the relevant private and Social Development at Koç 36 Koç Group Corporate Social Responsibility Report 2011 Social develeopment initiatives realized by Koç Group Companies in 2011 by subjects:
10% Sports 13% Health
49% Education 13% 43,000 Culture and Arts
Total number of student beneficiaries of VKF Educational 15% Scholarships between the years of Environment 1969-2011
public sector representatives. The final goal Arçelik Technical Service for Electrical Home measurement and metallurgical testing of the project is to make the private sector Appliances Program and the Arçelik operation’ field, which is a critically possess knowledge on having efficient and Laboratories important area for all the players of the constructive roles in the vocational training, Arçelik Technical Service for Electrical Home automotive sector, and to help increase the to form strategies and proposals that are Appliances Program has been initiated in employability of our youth. based on the researches on the vocational the context of MLMM, with the protocol training and that give attention to the signed between the General Directorate of Ford Otosan İnönü Industrial Vocational opinions of different stakeholders and to Vocational and Technical Education and High School, Ford Cargo Technical Training make the primary stakeholders from the Arçelik. Under the protocol, Arçelik Center public and private sectors to declare the will Technical Service for Electrical Home In the context of MLMM, students of the to realize the roadmap that has emerged. Appliances Program has been started İnönü Industrial Vocational High School, initially in 4 Technical and Industrial local and expat dealer employees, and The Model formed within the scope of Vocational High Schools, 3 of them being employees of suppliers are provided with “Vocational Education: A Crucial Matter for from Istanbul and 1 from Diyarbakır. While applied technical training and sales training the Nation” Project started to be the Ministry of Education prepared a at the Ford Cargo Technical Training Center, acknowledged as best practice at the curriculum for the four-year-long project, which was opened in 2011 within the international platforms. In 2011, the Project Arçelik Laboratories that hold home Eskişehir İnönü Industrial Vocational High gained Large Companies Award in the 2011 appliances with new technologies have School. The project is aimed to be a European Employee Volunteerism Awards been set up, prepared training materials sustainable model for the school-workplace that is organized by the Business in the were distributed to schools and program partnership through supporting the quality Community (BITC) and supported by the trainers have been trained by Arçelik. With of vocational training, contributing to the European Commission with the aim of the realization of the project, Arçelik aims to development of qualified human resources recognizing companies of all sizes across provide a portion of the technical staff need for the industry and meeting the majority of Europe that have developed schemes that in its authorized services from these schools, personnel needed by the dealers. help people facing barriers to work increase and help the employment process of these their employability skills. students in Electrical Home Appliances UMEM from Ford Otosan Technical Service program, by providing Professional Vocational Course Centers • School-Workplace Partnership Model them with a wide range of opportunities and Project (UMEM), a joint project of TOBB, Implementations from Koç Group an education based on knowledge of Ministry of Labor and Social Security, Companies contemporary technologies. As part of the Ministry of Education and TOBB Economy Projects developed by Koç Group projects, students are also given an and Technology University, has been carried Companies in response to the vocational opportunity for internship at Arçelik out in 81 cities, aims to increase 1 million training necessities in their sectors, and the Authorized Services. Students who wish to people’s employability skills in 5 years. school-workplace partnership work at Arçelik Authorized Services or in the Participating in the UMEM Skills’10 Project implementations developed in the context factories of Arçelik will be taken into an under the Kocaeli Chamber of Industry, Ford of MLMM are the most critical factors exam by the company and successful Otosan has supported both the automotive ensuring the sustainability of the MLMM students will be given an opportunity to sector and the city of Kocaeli where it is Project. In this context, many Koç Group certification. “Arçelik Electrical Home practiced. Approximately 100 people, who Companies have initiated exemplary Appliances Laboratory” has started its completed the 80-hour long theoretical sectoral implementations during the training at schools by the year 2011. A total course, have taken a job at the Ford Otosan reporting period number of 122 students benefit from these Kocaeli Factory in 2011. Pioneer of Philanthropy Award to the Koç laboratories. In terms of opening specialized Family laboratories in the field of raising technical Otokar Welding Training Workshop The Koç Family received the BNP Paribas service personnel for electrical home An extensive Welding Atelier has been “Philanthropy Award” in 2011, for their appliances, this program is a first in Turkey. opened within the Otokar facilities, in 2011. pioneering and exemplary work. Rahmi M. The purpose for the constitution of the Koç, Honorary Chairman of Koç Holding Ford Otosan Karamürsel 100th Year Industrial Welding Atelier is to provide Otokar and accepted the award on behalf of the Koç Vocational High School Laboratories other factories in the automotive industry Family during the ceremony held on 21 June. With its support for the MLMM Project, Ford with qualified workforce from the Industrial BNP Paribas is a leader institution in global Otosan contributes to the raising of qualified Vocational High School students, and to get banking and financial services and is human resources in the automotive sector. over the problems faced in finding trained considered one of the six most powerful In the year 2010, with the support of both personnel with a diploma or certificate. The banks in the world. basic industry and supplier companies, ‘3D atelier will be used for the education of the Coordinate Measurement and Metallurgical interns from the Industrial Vocational High Honors Medal to Rahmi Koç Testing Laboratory’ has been opened in the Schools. 30 to 60 persons will benefit from In 2011, Koç Holding Honorary Chairman, ‘Karamürsel 100th Year Industrial and the Otokar Welding Atelier, on the basis of Rahmi M. Koç was bestowed with the Technical Vocational High School.’ In 2011, years. In the context of the project, it is insignia of “Honorary Commander of The the laboratory continued to provide services aimed to match with every Industrial Most Excellent Order” (CBE) of the British for the training of qualified personnel in the Vocational High School Department of Metal Empire in the name of Her Majesty Queen ‘three dimensioned coordinate Works in Sakarya. After selecting the
Elizabeth II. Social Development at Koç 37 Koç Group Corporate Social Responsibility Report 2011
1,100,000 $
Total amount of contributions made for Vehbi Koç Award Winners for enabling them to increase the value they create
Vocational High School Department of Metal Technical Training Program in the industrial knowledge they gain through experience. Works in Sakarya. After selecting the and technical vocational schools and Furthermore, TürkTraktör will provide the students who will do internship in institutions, in order to bring up employees farmers with the opportunity to strengthen partnership with the schools, they will be who are acquainted to the new technologies their professional knowledge with applied given theoretical and practical vocational and whom it needs in the refinery- methods and to make efficient usage of the training at the Welding Atelier, for an eight petrochemical services. The duration of the agricultural equipment by opening the month period. protocol is 4 years. Schools that have a laboratories to them. As a result, it is aimed laboratory suiting the purposes of this to prevent the occupational accidents Tofaş Automotive Engineering Graduate project are the Kocaeli Anatolian Industrial resulting from the agricultural machines. Program and Technical Vocational High School, İzmir Turkey’s first “Automotive Graduate Aliağa METEM, Kırıkkale Bahşili H. Hidayet In addition to the above mentioned projects, Program” supported by a foreign university Doğruer Multiple Program High School and TürkTraktör also donates tractor engines to was launched in 2007 under Tofaş the Batman Industrial Vocational High vocational high schools and universities in leadership and in cooperation with Torino School. order to contribute students’ learning Polytechnic University and Uludağ University. process through providing real materials for Being a first in Turkey, the graduate program First of the two pillars of the project has visual education. in automotive engineering with foreign been the restoration of the laboratories in support is a pioneering program in terms of the chemistry departments of four Industrial strengthening the cooperation mechanisms Vocational High Schools. The second pillar of Koç Companies Support Education that Turkey needs between universities and the project has been to open “petroleum the automotive sector, and aims at helping refinery” branch next to the “chemistry Standing United for Education with Arçelik raise the qualified workforce that is needed technology” branch that exists in the The “Standing United for Education with to carry the Turkish Automotive Industry school’s chemistry departments. Special Arçelik Project” which targets at primary forward. A total of 48 students have lesson plans have been created for this school children was initiated in 2004 in participated in, and 7 have graduated from branch and students have been accepted partnership with Ministry of Education with the program since it was launched in 2007. accordingly. the understanding that the supports for the In the 2011 academic year, 32 students self-development of children should be attended and four students have graduated TürkTraktör Agricultural Machinery started at early ages. Within the context of from the program. Laboratory the Project, the construction of “Our Rooms” In the context of MLMM, and with the in the schools was completed in 2011. Tofaş Fiat Laboratories protocol signed between TürkTraktör and “Standing United for Education with Arçelik The Fiat Laboratories (Fiat Technical Ministry of Education General Directorate of Project”, which aims to increase the Education Program), which is implemented Technical Education for Boys, “TürkTraktör education and development standards of integrally with the MLMM Project, was Agricultural Machines Training Program” has and bring them into society as exemplary launched for the purpose of training a been initiated in the Ankara Gazi Industrial individuals, the students who are receiving technical workforce that understands and Technical Vocational High School, where education in Turkey's Regional Primary developments in the automotive industry in the TürkTraktör Agricultural Machinery Boarding Schools and who come from our country, that is to say, the production, Laboratory has been constructed. Within families with limited financial means; has import and export targets and new the scope of the cooperation developed in reached 200,000 students in 300 schools in technologies in the field. As of 2011, a total of accordance with MLMM Project’s 60 provinces. 682 students are being trained in the Fiat school-workplace partnership model, laboratories. TürkTraktör continued with the expansion of “What Will the Weather Be Like Tomorrow?” “TürkTraktör Agricultural Machinery from Aygaz As part of the in-service training given to the Laboratories” in 2011. With the trio protocol The project, which was initiated in Laboratory teachers by the Tofaş Technical signed between the Ministry of Education partnership with Regional Environmental Training Center, trainings based on General Directorate of Technical Education Center (REC), aims to raise awareness contemporary technologies are provided for Boys, Ministry of Agriculture, Food and regarding climate change and contribute to every year. With these trainings, our Husbandry General Directorate of the spread of more responsible and teachers’ and students’ technical knowledge Agricultural Reform and the TürkTraktör, sustainable consumption habits. Within the is kept up to date. The students benefitting “TürkTraktör Agricultural Machinery context of the Project, interactive training from the Fiat Laboratories enjoy the Laboratories”, which constitutes the first of its practices have been continued in 2011. In the opportunity to graduate by keeping a close kind in Turkey, are extended to Şanlıurfa 2nd phase of the project, which has lasted 6 track of contemporary developments Akçakale GAP Agricultural Vocational High months, 11 cities were penetrated with "Sky through the theoretical and practical School, Amasya Gökhöyük Agricultural Truck" which includes a mobile planetarium trainings they receive and by examining the Vocational High School and Bursa and a magic globe where the astral Fiat brand and technologies closely. Osmangazi Agricultural Industrial School movements can be watched in 3D. In these and Agricultural Vocational High School in cities 4,302 people, the majority of which Tüpraş MEGEP School – Workplace the 2011-2012 educational period. With this was primary or high school students, Partnership Model project, it is aimed to have the students in received applied education by REC The aim of the Tüpraş Petrochemical the vocational high schools receive applied specialists. The number of people who have Laboratories Project is to apply the Tüpraş training and help them to internalize the
Social Development at Koç received education since September 2010 38 Koç Group Corporate Social Responsibility Report 2011
6.6 MILLION
Number of students reached by the end of 2011 through Yapı Kredi's "Infinite Blue Project"
Yapı Kredi's "Infinite Blue Project" students
has reached 8,360. Evaluations conducted develop themselves and have occupations Yapı Kredi Volunteers Platform in by REC specialists showed that awareness on such as web/graphic design, video, cooperation with TEMA Foundation planted climate change reached to 93% among montage/editing, photography and 500 walnut trees with the donations of its participants after the 2nd phase of trainings. cameraman, reporting, blog authorship, 250 Corporate and Commerical Banking With the launch of translatorship, data/content entrance. employees the income from which will be www.yarinhavanasilolacak.org website and used in improvement of schooling various social media channels, the project Umbrella Movement from Tüpraş conditions in 4 different villages in Kargalı reached 20,000 followers 78% of whom are 100 Smiling Faces in Körfez: The aim of the and Ahatlı villages of Kocaeli. between the ages of 13-17. project of which target group is the high school students with low social life skills and Infinite Blue Project from Yapı Kredi Support for Education of Disabled People experiencing social integration problems, is Since 2006, Yapı Kredi has continued its from Bilkom to form a communication and conseling “Infinite Blue” Project, which is an awareness As a contribution to the “Technocamp network between the students and Tüpraş raising project aimed at primary and high without Boundaries” Project that is employees, to help students choose the school students. In cooperation with implemented by the Ministry of Family and right occupation, and to support them TURMEPA and with support from the Ministry Social Policies Disabled and Elderly Services through Career Days and Personal of Education, the Project aims to raise General Directorate, in 2011, Bilkom (from Development Seminars through utilizing the awareness of students regarding the Koç Information Technologies Group) aimed “Vocational and Life Coaching” approach. In conservation of natural resources. The to employ young people with disabilities in the year 2011, the project included informing Project aims at providing one school areas which do not require physical presentations on Basic Rules of administrator and one teacher at primary qualifications and work with the computer Hygiene/AIDS, a trip to the Darıca Zoo and and high schools in coastal provinces with and the Internet in the various sections of Osman Hamdi Bey Museum, and the the “Infinite Blue” education, which would be the service sector such as graphic design, distribution of the book called “The Country taught to all students by them. The content programming, video editing, reporting. The of White Lilies” to the students. of the program was prepared by a “Techocamp without Boundaries” Project committee composed of faculty members aims to increase the information productivity 100 Smiling Faces in Aliağa: İzmir Refinery from Ankara University and Gazi University, of the disabled youth between the ages collaborated with the 100 Smiling Faces and the educative material was found 10-35 by the education and implementation Umbrella Movement Volunteers and Turkey suitable to be implemented at schools by process with regard to the international Education Volunteers Foundation (TEGV) for the Head Council of Education and Morality standards and also to raise awareness 16 weeks. 40 students from 7 schools of the Ministry of Education. With the Project, among the families. With publications, this benefited from the workshops TEGV which was concluded at the end of 2011, project aims to inspire the young people provided without any charge, such as 6,600,000 primary and high school students with disabilities, their families and the society Reading Rooms, Dreams Workshop, have been reached through the education at large by the fact that the disabled people Children Play Chess, Knowledge is my Job, given to a teacher and an administrator at can contribute to the development of the Basketball Volunteers, Sport with Games each schools in 28 coastal provinces and information society and become successful and Theater. Van. The long-term goal of the project is to individuals if they are given opportunities. At have Infinite Blue education integrated into the first stage of the Project, with the aim of Educational Support for village children who the curriculum of primary and high schools. expanding the Technocamps in the country, cannot attend school it is aimed to develop the technological With the colloboration of Tüpraş SEK İzmit I Read I Play infrastructure of the available units in Adana, Natural Activities Club, TEMA Foundation The I Read I Play Project executed by Yapı Ankara, Antalya, Diyarbakır, Istanbul, Izmir Kocaeli Branch Office, Kocaeli Metropolitan Kredi in cooperation with the Turkey and Kayseri into Technocamps and Municipality, Karamürsel Municipality, Education Volunteers Foundation (TEGV) continuous education centers by working residents of the Karamürsel Senaiye Village, has adopted as its mission stimulating the together with the Disabled Coordination and headmen of the villages in the area, and creativity of elementary school children, Consultancy units of the municipalities. Kocaeli Municipality Branch Office for allowing them to express themselves freely Village Services, a walnut sapling planting in writing and speaking, in any environment, “Technocamp without Boundaries” Project project has been developed for the helping them become individuals who can aims to give opportunity to the disabled afforestation and development of the conceive what they read and listen to, who individuals to choose their professions villages of the Karamürsel province. 3,650 have a habit of reading and a large without being bound to physical space, to walnut saplings, which were acquired vocabulary. The Project reached 9,760 have sufficient knowledge and qualifications through the campaigns that were attended students in 2011. Within the scope of this in their professions and to have a wider by the Tüpraş employees, have been Project, the total number of students range of job opportunities with the planted in the Karamürsel Senaiye Village reached since 2006 is 90,000. In 2011, under certificate courses realized in collaboration and in other surrounding villages. The aim of famous theater players’ coaching, children with the universities. Together with this the Project is to contribute to school acted out plays that center around the project and in parallel with the development expenses of children who cannot attend articles of the Convention on the Rights of of technology, it is aimed to produce school because of economic restraints with Children in TEGV Education Parks of 11 cities. opportunities to prevent obstacles through the income that will be generated from personal solutions, to have the young and walnut prodcution and to support the adult disabled people to continuously development of the villages and villagers. Social Development at Koç 39 Koç Group Corporate Social Responsibility Report 2011
110,000
Total number of 12th İstanbul Biennial exibitions visitors
Koç Holding Chairman Mustafa V. Koç visiting İstanbul Biennial
Read, Think, Share Development Project enhancing their understanding of Metropolitan Museum of Art from Yapı Kredi contemporary arts, Koç Holding has opened With the support that Vehbi Koç Foundation Read, Think, Share is a leadership the doors of the Biennial to university has given to the Metropolitan Museum of development project conducted by the Yapı students free of charge and supported Art, the Carpets, Fabrics and the Great Kredi Banking Academy with the Young students’ meeting with contemporary art. Ottoman World and Ottoman Palace Arts Guru Academy (YGA) and the Dream (14th-20th Centuries) galleries have been Partners Association. The project gives Yapı With the “Art Education Programs for opened to the visitors in 2011, at the fifth Kredi Bank employees a “learn-through Children” that were realized by Koç Holding, most visited museum in the world. experience” opportunity to develop their children between the ages of 6 to 14 have leadership skills while creating a experienced an exciting meeting with the In these two galleries that are in the Islamic development platform for 6th and 7th grade contemporary arts. In this context, it is Arts section of the Metropolitan Museum of elementary school students to become intended to develop museum and exhibition Art, unique pieces from the 600 years old self-confident individuals who can dream, culture of children, to increase their history of the Ottoman arts have been outline plans to fulfill their dreams, think attention towards contemporary art, and to presented to visitors from all around the creatively, write, approach issues from help them get acquainted with basic artistic world. In the Koç Family Galleries, the rich different perspectives, self-confident and terms and concepts. The guided tour team diversity of arts that belong to the Ottoman are aware of their potential. By the end of and mobile guide application designed for palace, provinces and villages will be 2011, 130 employees participated in this the 12th Biennial have also been amongst the exhibited. The two galleries of the Islamic Art project. projects realized by the support of Koç section that have been renewed, expanded Holding. and reopened to visitors in 2011 will carry the Koç Supports Arts and Cultural name of the Koç Family for the next 75 Heritage Vehbi Koç Foundation years. In the scope of the Biennial, VKF has The Koç Group sets aside resources in order conducted a special training program for Koç Companies Support to preserve and develop our cultural values the art teachers that work at primary and Arts and Culture and art, to promote it on national and high schools in Istanbul. The aims of this international levels, and to provide program have been to increase teachers’ Sevgi Gönül Theatre Festival from Aygaz protection and incentives for artists. The Koç interest in contemporary art, to contribute to In 2011 Aygaz sustained its support given to Group believes that creativity is one of the the widening of their vision, and to bring a the Sevgi Gönül Theatre Festival at Koç most important factors required for societies new perspective to their approach toward University since 2006 and continued to do to develop and it aims to be involved in students. so in 2011. raising creative generations by contributing to the cultural development of society with Rahmi Koç Museum Ticket Sponsorship the support it provides for cultural and Vehbi Koç Award 2011 (Culture) Aygaz, which has been supporting İstanbul artistic activities. With the various projects RMK Museum by ticket sponsorship since that developed in 2011, Koç Holding, Group The Vehbi Koç Award, which is given every 2005, undertook the ticket sponsorship for Companies and the Vehbi Koç Foundation year to individuals and institutions that help the Ankara Çengelhan RMK Museum in 2011. have continued to raise awareness in the increase people’s quality of life in one of the During 2011, 220,000 tickets have been areas of culture and art. fields of education, health, culture or arts, printed with the support of Aygaz. has been given simultaneously to an individual and an institution for the first time Ottoman History of Diplomacy Project from International Istanbul Biennial in 2011. Aygaz Koç Holding has taken on the sponsorship of The project was initiated to remind the the contemporary art event that forms direct Prof. Dr. Filiz Ali, who is considered to be people of the historical and cultural riches of relations with social problems, the Turkey’s most influential and efficient music the geography in which we live and to pass International Istanbul Biennial, which is writer, musicologist and music critic; and them on to the future generations by organized by the Istanbul Foundation for ‘Ayvalık International Music Academy’ making the information and documents of Culture and Arts (İKSV), for 10 years (AIMA), which was founded by Prof. Dr. Filiz the Ottoman diplomatic archives more between 2007 and 2016. Ali and has proven itself at home and abroad accessible for researchers. In the process, to be a successful ground-breaking project the information and documents gathered Together with the Venice Biennial, Istanbul while expanding the horizons of young from the Ottoman archives are turned into Biennial is considered to be the most musicians, have received the award. books and published. Memoirs and notes of important art event of the year in Europe, diplomats who served in İstanbul are and has been organized for the 12th time on Prof. Dr. Filiz Ali has been bestowed with the amongst the published books. These books September 17 – October 13, 2011, with the award not only for her personal success in are appreciated by domestic and foreign title “Untitled”. the field of music, but also for her authorities, and serve as topics and pioneering work to educate Turkey’s young references for special news with media In order to increase the interest for musicians and guide and enable our coverage. contemporary art in our country, and successful musicians to pursue their careers especially amongst the youth and the in international platforms.
Social Development at Koç growing generations, and with the aim of 40 Koç Group Corporate Social Responsibility Report 2011
340,000
Total number of Tofaş Museum of Anatolian Cars and Carriages visitors since its foundation Tofaş Bursa Museum of Anatolian Cars and Carriages
Ford Otosan Cultural and Social Life Center including artists’ biographies and summaries Antonine Nymphaeum was completed in Ford Otosan Cultural and Social Life Center of their theatre careers, provide a reference 2010 by Aygaz support. Aygaz will continue has been founded with the aim of reminding for the Turkish theatre. to support the Sagalassos Project for three participants, from all ages and all social more years, so that the area around the segments, of the place and importance of In the context of the Yapı Kredi Afife Theatre Nymphaeum will be arrayed. arts and culture in life, for developing their Awards, various competitions, events and potentials and reveal their creativity. campaigns are also organized to Aygaz Supports Van Castle Excavations Composed of an auditorium, a gymnasium, communicate the joy of the theatre to the Together with the Ministry of Culture and an observation tower, art ateliers, a community, especially to young Tourism and Istanbul University, Aygaz restaurant and social activity rooms, the generations. Anticipated with great curiosity supports the mound excavations of the Van Cultural and Social Life Center attracts and excitement in the theatre world, the Castle. In the excavations conducted in the approximately 6,000 visitors every month. Awards will again be distributed to the mound found to the north of the Van Castle, The center hosts many activities ranging winners at a gala ceremony in April 2012 a 5 thousand year old portable furnace has from educational activities to vocational been discovered in 2011. courses, personal development to hobby Yapı Kredi Culture and Arts Publishing Inc. courses, traffic and environmental Holding the largest share of the Turkish Respect for History Project from Opet education to musical get-togethers. publishing market since its foundation; Yapı Respect for History Project first initiated in Providing opportunities for local art group Kredi Publishing (YKY) continued its February 2006, supports activities to give the gigs, the Center has become the most leadership in 2011. By producing first editions historical Gallipoli Peninsula a modern look important arts-culture center of the region. of 233 titles and reprints of 432 titles in while protecting its natural beauty. Within various genres such as literature, poetry, the project, educational programs Tofaş Museum of Anatolian Cars and arts, general knowledge, classics, graphic supporting social development have been Carriages and Tofaş Art Gallery novels and philosophy, YKY has offered over carried out; infrastructure investments and Established by Tofaş in 2002 in order to 1 million books to its readers. Having printed landscaping projects have been conducted protect the Turkish automotive heritage, the its 3,468th book, YKY also reached to a level in order to help tourists explore the region Tofaş Museum of Anatolian Car is the first of success being hard to achieve in Turkish where the Dardanelles Battles took place, and only museum of Anatolian cars in publishing history. Yapı Kredi Cultural easily. With the Respect for History Project, Turkey and has been visited by almost Center hosted eight exhibitions in 2011, not only physical improvements are made 340,000 people since its foundation. The which all received great interest. but courses and educational programs with second comprehensive exhibit of the Tofaş social content are conducted to increase the Art Gallery was the “Toy Exhibition,” which The exhibition entitled “See Through My quality of life of the local people who live in was opened on May 10, 2011. Carrying the Eye-Photographs of Yaşar Kemal by Güneş the region. In the context of the project, culture of toys and games from past to Karabuda: 1956-2010”, prepared in restoration works for the 57th Legion present, and showing the transformations collaboration with Caddebostan Cultural Martyrs’ Cemetery have been concluded in they went under with contemporary Center Art Gallery and Yapı Kredi Culture 2011. Martyrs’ Cemetery has been renewed technology, the exhibit has been visited by and Arts Publishing, was composed of in accordance with its original shape, and 60,000 people in 8 months. Following the photographs of the writer Yaşar Kemal reopened to visitors after being reorganized first printed product of the Tofaş Art Gallery which have been taken since 1956. The to hold international ceremonies. With this and the first exhibition book of 2009, “The photograph exhibition “The Pulse of Jazz” by project, 57th Legion Martyrs’ Cemetary has Same Old Turkish Bath,” Yapı Kredi Culture & Burcu Orhon, invites visitors to experience been recovered with a new look honoring Arts prepared and published the “Toy photographs of jazz. The period after the gallant martyrs of the Dardanelles Battles, Exhibition” book for Tofaş in 2011. death of Atatürk is recounted by the which pose an important turning point in the exhibition entitled “November 10 Day of course of the foundation of the Turkish During the year, Tofaş has continued its Mourning” collected from the Yapı Kredi Republic. support for arts and culture by sponsoring Historical Archives Selahattin Giz Collection. the 54th International Venice Biennale Sponsorship for Pamukkale Hierapolis and Turkish Pavilion, the 50th International Bursa Koç Companies Support Cultural Küçükyalı Archeopark Excavations Festival ‘Ferit Odman Quintet Ft. Stefano Di Heritage As a sponsor for the excavations of Battista’ Concert, the Turkish Film Festival of Hierapolis, an UNESCO World Heritage site Rome and by being the main sponsor of the With the pride and responsibility of living in and one of the five largest antique city ruins Roberto Bolle Classical Ballet Performance. one of the world’s richest places in terms of in Turkey, since the 90s, Tofaş has been both historical and cultural legacy, Koç supporting the bringing to light of another Yapı Kredi Afife Theater Awards Group Companies support the studies to settlement that holds a crucial place in the the Yapı Kredi Afife Theater Awards has been protect archeological and cultural heritage. Anatolian History. Another archeological organized since 1997, with the counseling of excavation that Tofaş has supported since its Haldun Dormen and the support of Yapı “Sagalassos Antonine Nymphaeum beginning is known as the area of Küçükyalı Kredi. A book has been published in 2011, Restoration Project” from Aygaz Archeology Park. Conducted under the for its 15th year, which tells the unique story Since 2005, Aygaz has been supporting, as supervision and protection of the T.R. of the Yapı Kredi Afife Theatre Awards. The the sole Turkish sponsor, the project intends Ministry of Culture and Tourism, the General book, which details the 191 artists and 14 to resurrect the “lost city” of Sagalassos Directorate for Cultural Heritage and productions that have received the award Museums, and initiated by Italian and Turkish ongoing since 1990. The restoration of the Social Development at Koç 41 Koç Fest University Sports Games
The Koç Fest initiated in 2006 by Koç Holding to contribute to the development of youth and enriching their lives, the Koç Fest visited 28 cities in 6 years and has been organized 60 times. Believing that sports increase the quality of life in a society, Koç Holding has been the main sponsor of the “Turkish University Sports Games” since 2009, organized by the Turkish University Sport Federation. Thus, the most prestigious inter-universities sports event and also Turkey’s the most broadly participated sports organization has been renamed to be “Koç Fest University Games Turkey” and has been an irreplaceable part of the festival. With this initiative, Koç Fest combined sports, music and entertainment under the same roof and has been given the title of Turkey’s largest youth festival. Since 2009, every year, 20,000 athletes from 40 disciplines compete in the Koç Fest University Sports Games Turkey. A portion of the teams and athletes which succeed Koç Fest University Sports Games in the event represent Turkey in international events, with the support of Koç Holding. Koç Fest visited seven universities in 2011, and made its greatest final in Konya Selçuk University, with the participation of approximately 4,000 students. academicians in 2001, the Küçükyalı Koç Companies Support Sports Archeopark Project has become one of the Beginning with 2011, in order to integrate the Istanbul 2010 European Capital of Culture Support for Basketball from Arçelik events into the social media, RFID Agency projects by the end of July 2009. Arçelik views the support it gives to sports as (Radio-Frequency Identification) technology has an important contribution to the been used for the first time in an event area by Tüpraş’ Supports for Cultural Heritage development of future generations, and it the Koç Fest, and university students have been During the year, Tüpraş published “Urartu has sponsored a number of different sports given a chance to meet with this technology. Change in the East,” the first book of the in Turkey since its foundation. Basketball Practicing this innovative application within the Antolian Civilizations Book Series initiated in organizations which Arçelik has supported scope of the festival, Koç Fest has been chosen collaboration with Yapı Kredi Culture and since 2006 with its brand, Beko, continued in to be the “Social Media Campaign of the Year” in Arts Publishing and preparation of which will the reporting period as well. Also continuing the 2011 European Digital Communication Awards, last ten years. Having started with “Urartu with its sponsorship for the Turkish Basketball which is also known as “Europe’s first digital Change in the East”, a reference book on a League during the reporting period, Beko communication awards platform.” It has also been civilization which made its mark on our has become the ‘Presenting Sponsor’ of the deemed worthy of a Golden Award at the annual geography, this magnificient series will European Basketball Championship that was W3 Awards organized in the US, with its Social continue with books on Aphrodisias, Prygia, organized between August 31 – September Media Project, and received a Silver Award with Hittites, Kültepe, Lydia, Ancient Greek, 18, 2011 in Lithuania. the technological applications used at the event. Byzantium and Seljuks. With this application, it has been aimed to increase As one of the most important basketball the interest towards the Koç Fest University Sports Tüpraş is also the publishing sponsor of the leagues of Europe, the German Basketball Games Turkey, and this goal has been achieved Aktüel Archeology Maganize, in line with its League has been renamed at the beginning with the integration of 2,500,000 people to the commitment to “protect the future of the of the 2009-2010 season as “Beko Basketball event. world with environmentally sensitive Bundesliga,” after Beko became its name investment and protect the future of sponsor. Since 2010, the Russian basketball humanity by preserving its cultural league has been organized with the name of Equestrian Club Presidential Cup, Konya heritage.” Telling the history of Anatolia to “Beko Professional League.” In the past days, October 29th Republic Cup Tennis the people of Anatolia, Aktüel Archeology Beko has also taken on the sponsorship of Tournement, Antalya Dedeman Tennis Magazine is the only national archeology the Lithuanian league and starting with the Tournament. magazine in our country, where hundreds of 2011-2012 season, it will be played as the archeological excavations and researches “Beko LKL League.” With its brand, Beko, Tat Supports Surfing are conducted. Tüpraş has also contributed Arçelik will continue to be the “Sponsor of Tat has been the catering sponsor of the to the arts and culture with its support to the Basketball” in Turkey and around the world. Pegasus Surf’n Sound Sports and Music publishing of the book, Dardannelle Festival held in İzmir, Alaçatı. Shipwrecks. Arçelik’s Support for Football With its long history and dynamic structure, Tofaş Basketball Camps and Basketball Çatalhöyük Excavations from Yapı Kredi Grundig is one of Arçelik’s strongest brands. Volunteers Project - FIATBALL The 21-meter high Çatalhöyük Hill located 10 With the agreement signed in July 2011, The Basketball Volunteers Project has been kilometers southeast of the town of Çumra Grundig has become the official technology continuing its activities since 2001 in in Konya holds secrets to the past stretching sponsor of Germany’s Football Leagues cooperation with the Turkey Education back 9,000 years. Çatalhöyük is a center “Bundesliga.” According to the signed Volunteers Foundation (TEGV) and the Tofaş that sheds light onto the history of humanity contract, Grundig will provide the broadcast Sports Club. The project organizes activities with the unique findings it holds of first production unit and central office of the in 11 TEGV Education Parks and 3 Learning habitation, first house architecture and first German Football League Union DFL, with Units and the goal is to help children who do sacramental constructions. Some of artifacts the latest technology televisions. Grundig not have the opportunity to be involved in from the excavation are on display while technology will support Bundesliga sports, develop healthy personalities and others are protected in storage in Konya broadcasts, starting from the production social skills through basketball. While the Archeological Museum. period. projects reaches every year an average number of 700 children from the target Koç Supports Sports Aygaz Supports the American Football Team group, 6th to 8th grade students, over of Koç University 6.000 children have participated in the The Koç Group is aware of the contribution Aygaz has been supporting the Koç program since its initiation. that sports make to social development and University RAMS American Football team it supports projects that promote sports in since 2007. Sports equipment and playing FiatBall 2011 Basketball Festival has taken every segment of society, beginning with its away expenses of the team members are place at the Bolu İzzet Baysal University, with own employees. provided by Aygaz. the participation of 224 people. This year, for the first time, the tournament took place Otokoç Otomotiv Supports Sports only with female students’ participation and Otokoç, has continued to support sports throughout the event, children experienced during the reporting period by sponsoring the excitement of a tournament while the Hülya CUP Tennis Tournament, Adana developing their team work and
Social Development at Koç communication skills. 42 Koç Group Corporate Social Responsibility Report 2011
Arçelik Research & Rescue Team
Tofaş Sports Club set up under Koç Holding’s roof, which took the earthquake victims, under the harsh Founded in 1974, in the Tofaş Factory in the responsibilities of identification and winter conditions. Bursa, under the name of Tofaş SAS provision of urgent needs, as well as (Combining Tofaş and the SAS club – Water propeling first aid and search & rescue Koç Group Companies, including Koç Sports, Athletics, Sportive games), the sports teams to the region. For the purposes of Information Technologies Group, club took the name of Tofaş Sports Club in identifying additional needs of the area and TürkTraktör, Arçelik and Aygaz, sent the 1995. By the year 2009, Tofaş Sports Club is on-field coordination of the Koç Group’s aid emergency aid materials they collected showing activity in the branches of campaign, Koç Holding’s CEO Osman Turgay from their employees that work at the basketball, football, volleyball, table tennis, Durak and a group of senior executives paid headquarters and facilities across the water polo and bridge. a visit to the earthquake region. country, via the campaigns they organized, to the earthquake region, by trucks and Achieving the Championship in the second Koç Group search and rescue team, trailers and in parties. In addition to the division during 2008-2009 season, Tofaş composed of 92 employees from Arçelik, emergency aid support it has given to the Basketball Team competed successfully in Yapı Kredi Bank, Tofaş, Ford Otosan and earthquake region, in 2012, Koç Group will first division, Beko Basketball League, during Tüpraş, worked in several areas in Erciş. Ford continue to help long-term solution finding 2010-2011 season. Tofaş Men’s Junior Otosan Search and Rescue Team (FOKE) efforts to the ongoing problems in the Basketball team became the “Men’s Junior reached Van on the first day of the region. Turkey Champions” in the 2010-2011 season. earthquake and supported the rescue works in shifts. They helped rescue Baby Azra and Activities within the scope of the Supports for Sports from Tüpraş her family, who became the symbol of hope Global Compact Founded in 2006 and working with 26 for the Van Earthquake. Aid supplies that licensed athletes, Batman Sports Club for included electric generators and heaters, In 2011, the Koç Group continued to support the Disabled Association has been which were identified to be primary needs, work related to the adoption and expansion renowned in the public for its successes, and were delivered to the earthquake area in a of the principles of the Global Compact. In continues with its activies with the support of short time. Aid supplies sent by Aygaz, 2011, having supported the development of a Tüpraş. Arçelik, Koçtaş and Tat Konserve companies management model within the scope of the have been distributed to those in need GC, Koç Holding participated in the UN “Tüpraşspor Football Club,” which was under the supervision of local officials. Global Compact Management Tool Training founded in 1995 as an independent initiative jointly held by the UN Global Compact of a group of employees at Tüpraş Batman Aygaz, primarily, sent LPG cylinders in Office and Deloitte at the Global Business Refinery, continues its activities with the various dimensions to the area and Partnership Forum of the Fourth United support of the company, and provides managed their distribution. Aygaz also sent Nations Conference on Least Developed talented young people who live around the open air heaters to be used in the search Countries. Koç Holding presented the Koç Batman Refinery with a platform where they and rescue works, and catalytic heaters, Holding Sustainability Management System can play consciously in a healthy stoves, illumination devices that run on LPG as an exemplary practice at this event. environment and opportunity to rise in this and other related equipment to be used in field. the tent cities. Koçtaş, primarily delivered electric generators, construction material Holding 80 athletes between the ages of and various products to be used in the 8-19 in 2011, the club has received significant search and rescue works in the area, and in titles in regional and national competetions the following days it has also sent inflatable in the age groups of 14, 16 and 19. Providing beds. services with 2 trained coaches and masseurs, the club also pays close attention The fuel supply for the electric generators in to its young members’ success in formal the area has been provided by Opet until education and sets it as a prior condition to the search and rescue works ended and city accepting them into the club. electricity is turned back on.
Yapı Kredi Supports for Sports Tat Konserve sent aid packages that include Yapı Kredi has continued its support for various food products to the earthquake sports by contributing to the Golf region. Together with these food products, Tournament and a Yacht Race, “Cup’ışalım trailers carrying emergency aid supplies mı?”. were sent to the region by Arçelik. In the Arçelik trailers, there were full functioning Support to Van laundry machines & dryers, detergent, blankets, catalytic heaters, infrared heaters, Following the earthquake with a magnitude wooden pallets, potable water, various food of 7.2 occurred in Van, Koç Group products, cleaning and clothing materials. Companies took immediate action and Also, 800 families in Van, Erciş and the mobilized their resources to help the villages were supplied tents that would provide better sheltering opportunities to
victims. A Coordination Committee has been Social Development at Koç 43 Koç Group Corporate Social Responsibility Report 2011
GRI Index
GRI Indicators Reference Page Notes Response Level Profile Indicators 1.1 Message From the Chairman 2 Fully Message From the CEO 3 1.2 Message From the CEO 3 Fully Sustainability Management at Koç 6 Climate Change and Emission Management 23, 24 2.1 Contact Inside Back Cover Fully 2.2 Koç Group in 2011 4 http://www.koc.com.tr/en-us/Corporate/Sectors/Pages/Sectors.aspx Fully 2.3 Koç Group in 2011 4, 5 http://www.koc.com.tr/en-us/Corporate/List_of_Companies/Pages/ListofKocGroupCom Fully Governance at Koç 7 panies.aspx 2.4 Contact Inside Back Cover Fully 2.5 Koç Group in 2011 4, 5 http://www.koc.com.tr/en-us/Corporate/List_of_Companies/Pages/ListofKocGroupCom Fully panies.aspx 2.6 - http://www.koc.com.tr/en-us/Investor_Relations/Corporate_Overview/ShareholderStr Fully ucture/Pages/ShareholderStructure.aspx 2.7 Koç Group in 2011 4, 5 http://www.koc.com.tr/en-us/Corporate/List_of_Companies/Pages/ListofKocGroupCom Fully panies.aspx
2.8 Koç Group in 2011 4, 5 Fully Product Information 33
2.9 - - http://www.koc.com.tr/en-us/Investor_Relations/MaterialDisclosures/Pages/MaterialDi Fully sclosures.aspx 2.10 Koç Group in 2011 4, 5 Fully Environmental Awards 30, 31 For My Country 34 Vocational Education: A Crucial Matter for 37 the Nation Project Pioneer of Philanthropy Award to the Koç 37 Family High Honors Medal to Rahmi Koç 37 Koç Fest University Sports Games 42 3.1 About the Report 1 Fully 3.2 About the Report 1 Fully 3.3 About the Report 1 Fully 3.4 Contact Inside Back Cover Fully 3.5 About the Report 1 "Koç Holding A.Ş. a holding company, when considered solely, has no significant impact Fully in terms of performance indicators compared to its subsidiaries . So in this reporting engagement we intend to demostrate totality of impact that Koç Group creates including its subsidiaries. We include our subsidiaries’ performances to our reporting engagements and progressively increase boundary level. In this report, we disclose performance for 17 Group Companies which were eligible according to GRI Guidance on Boundary Settings. Boundary level of this report also covers all major Koç Group Companies referring to 85.4% of total Group employees and 91% of the Group’s combined revenue.Beside the Sustainability Management at Koç 6, 7 10 principles of UNGC, Koç Holding Sustainability Performance Evaluation and Reporting System creates the basis of reporting content which is found on material sustainability issues for totality of Koç Group. During the process of establishing the System, material issues for Koç Group were determined by Koç Holding employees in consultation with subsidiaries’ experts and external expertise; reconsidered and revised if necessary in Sustainability Performance Management 7 the begining of every reporting engaement. Deciding on materiality is a challenging process for a holding company due to the sector specific differences of the subsidiaries. To this end, Koç Group materiality is created with respect to form a Group level consolidated materiality coverage, in the most comprehensive way possible. Sector specific issues are disclosed subsidiaries’ own reporting engagements.Koç Holding publishes CSR reports Our Stakeholders 8 in order to communicate with its key stakeholders who are identified within the strategic communication planning processes. To this end, as intended audience for CSR reporting practice, Koç Holding targets all person and entities identified as key stakeholder groups namely employees, customers, shareholders, investors, professional organizations, civil society organizations." 3.6 Content of the Report Inside Front Cover Fully About The Report 1 3.7 Content of the Report Inside Front Cover Fully About The Report 1 3.8 Content of the Report Inside Front Cover Fully About The Report 1 3.9 Sustainability Management at Koç 6, 7 In performance measurement, Koç Holding and Group companies use reliable and Fully standardized system and information technology infrastructure. All the measurement parameters used in this report were provided by methodologies accepted in field and methods set by GRI performance indicators were abided. 3.10 About the Report 1 Fully Sustainability Management at Koç 6, 7 3.11 About the Report 1 Fully 3.12 GRI Index 44-46 Fully 3.13 Disclaimer Inside Back Cover Fully GRI Index 44 Koç Group Corporate Social Responsibility Report 2011
GRI Index
GRI Indicator Reference Page Notes Response Level Profile Indicators 4.1 Governance at Koç 6, 7 http://www.koc.com.tr/en-us/Investor_Relations/Corporate_Overview/Org/Pages/Orga Fully nization_Chart.aspx 4.2 Governance at Koç 6 Fully 4.3 Governance at Koç 6 Fully 4.4 Governance at Koç 6, 8 Fully Occupational Health and Safety at Koç 10, 11 Employee Engagement Survey 16 Suggestion Systems 16, 17 4.5 Governance at Koç 6 Fully Koç Compensation System 15, 16 4.6 Koç Holding Annual Report 2011 82 http://www.koc.com.tr/en-us/Investor_Relations/FinancialStatementsStatistics/AnnualR Fully eports/Pages/AnnualReports.aspx
4.7 Governance at Koç 6 Fully Koç Holding Annual Report 2011 14-15; 18-19 http://www.koc.com.tr/en-us/Investor_Relations/FinancialStatementsStatistics/AnnualR eports/Pages/AnnualReports.aspx
4.8 Governance at Koç 6, 7 http://www.koc.com.tr/en-us/Corporate/Vision_and_Values/Pages/VisionandValues.aspx Fully 4.9 Governance at Koç 6, 7 Fully Koç Holding Annual Report 2011 Inside Front Cover, http://www.koc.com.tr/en-us/Investor_Relations/FinancialStatementsStatistics/AnnualR 24-25 eports/Pages/AnnualReports.aspx
4.10 Governance at Koç 6 Fully Koç Compensation System 15, 16 4.11 The Global Compact Inside Front Cover Fully Governance at Koç 6, 7 The 2˚C Challenge Communiqué 24 Koç Holding Annual Report 2011 Inside Front Cover, http://www.koc.com.tr/en-us/Investor_Relations/FinancialStatementsStatistics/AnnualR 24-25 eports/Pages/AnnualReports.aspx
4.12 The Global Compact Inside Front Cover Fully Sustainability Management at Koç 6 The 2˚C Challenge Communiqué 24 4.13 Our Stakeholders 9 Fully 4.14 Our Stakeholders 8 Fully 4.15 Our Stakeholders 9 Fully 4.16 Our Stakeholders 8, 9 Fully 4.17 Our Stakeholders 8, 9 Fully Management Approach DMA EC "Governance at Koç (p.6-9); Work Environment at Koç (p.14); Koç Academy and Training in our Companies (p.15); Koç Group Compensation System Fully (p.15-16); Koç Holding Retirement Pension Foundation (p.18); Environmental Management (p.22-23); Climate Change and Emission Management (p.23-24); Environmentally Friendly Products at Koç (p.29); Environmental Trainings Provided in 2011 (p.30); Koç Provide Support for Health (p.34); For My Country (p.34); Vehbi Koç Foundation (p.35); Koç Supports Education (p.35-36); Vocational Education: A Crucial Matter for the Nation Project (p.36); Koç Supports Arts and Cultural Herritage (p.40); Koç Holding Annual Report 2011 (p.2-7) http://www.koc.com.tr/en-us/Investor_Relations/FinancialStatementsStatistics/AnnualReports/Pages/AnnualReports.aspx "
DMA EN Governance at Koç (p.6-7); Management of Environmental Issues (p.7); Environmentally-Friendly Practices at Koç (p.22); Environmental Management Fully (p.22-23); Environmental Management and Investment Expenditures (p.23); Climate Change and Emission Management (p.23-24); Reduction in Indirect Energy Consumption (p.25); Efficiency at Koç (p.25-27); Koç Group Recycling Project (p.26); Biodiversity and Environmental Development Projects (p.28); Environmentally Friendly Products at Koç (p.29-30) DMA LA Fully "Sustainability Management at Koç (p.6-7); Human Rights at Koç (p.10); Occupational Health and Safety at Koç (p.10-13); Labor Union Rights at Koç (p.13); Work Environment at Koç (p.14, 15, 16, 18); Minimum Notice Periods (p.15); Koç Academy and Training in our Companies (p.15); Koç Group Compensation System (p.15); Leader Development Programs (p.17); Koç Holding Retirement Pension Foundation (p.18); Any personal property of employees can not be the reason of different treatment, like all processes of Koç Group companies, in remuneration process. For this reason, as longas they perform the same job, all Group employees are paid equal wages. Equality of women and men wages may vary only in seniority status, overtime, performance bonus and similar payment cases."
DMA HR "Sustainability Management at Koç (p.6-7); Human Rights at Koç (p.10); Labor Union Rights at Koç (p.13); Work Environment at Koç (p.14, 15); Operational Fully Entry and Decommisioning Practices (p.26); Business Ethics in the Supply Chain (p.32); Being a signatory party to UNGC, Koç Holding is commited to support and respect protection of human rights within it's sphere of influence; to ensure that it's operations are not complicit in human rights abuses.Koç Holding and its subsidairies take necessary precautions in order to realize these principles within all processes including security processes; parallel precautions and implications are expected from supply chain."
DMA SO "Sustainability Management at Koç (p.6-7); Governance at Koç (p.6-7); Operational Entry and Decommisioning Practices (p.26); Ethical Values at Koç Fully (p.32-33); Relevant contribution to political parties, politicians and related institutions is zero.http://www.koc.com.tr/en- us/Investor_Relations/Corporate_Overview/VisionValues/Pages/VisionValues.aspx; http://www.koc.com.tr/en- us/Investor_Relations/Corporate_Overview/Strategic_Principles/Pages/Main_Competitive_Advantages.aspx"
DMA PR "Governance at Koç (p.6); Sustainability Management at Koç (p.6-7); Our Stakeholders (p.8,9); Ethical Values at Koç (p.32-33); Responsible Advertising Fully and Marketing (p.33); Product Information (p.33)http://www.koc.com.tr/en-us/Corporate/Vision_and_Values/Pages/VisionandValues.aspx" GRI Index 45 Koç Group Corporate Social Responsibility Report 2011
GRI Index
GRI Indicator Reference Page Notes Response Level Performance Indicators EC1 Koç Group in 2011 4, 5 Partially Koç Holding Annual Report 2011 http://www.koc.com.tr/en-us/Investor_Relations/FinancialStatementsStatistics/Annual Reports/Pages/AnnualReports.aspx EC2 Climate Change and Emission Management 23-24 Partially EC3 Koç Holding Retirement Pension Foundation 18 Partially EC5 Koç Group Compensation System 15-16 Fully EC7 Work Environment at Koç 14 Fully EC8 Social Development at Koç 34-43 Koç Provides Support for Health (p.34); For My Country (p.34); Vehbi Koç Foundation Partially (p.35); Koç Supports Education (p.35-38); Vocational Education: A Crucial Matter for the Nation Project (p.36); Koç Companies Support Education (p.38-40); Koç Supports Arts and Cultural Herritage (p.40); Koç Companies Support Arts and Culture (p.40-41); Koç Companies Support Cultural Herritage (p.41-42); Koç Supports Sports (p.42); Koç Companies Support Sports (p.42-43) EC9 Quality and Management Systems 7 Partially Number of Interns 14 Koç Academy and Training in our Companies 15 Environmentally Friendly Products at Koç 29-30 Environmental Trainings Provided in 2011 30 Vocational Education: A Crucial 36-37 Matter for the Nation School Workplace Partnership Model 37-38 Implementations from Koç Group Companies EN5 Message From the CEO 3 Fully Efficiency at Koç 25 EN6 Environmentally Friendly Products at Koç 29-30 Fully EN7 Reduction in Indirect Energy Consumption 25 Fully EN8 Efficiency at Koç 25 Fully EN10 Efficiency at Koç 25 Fully EN11 Biodiversity and Environmental Development Projects 28 Fully EN13 Biodiversity and Environmental Development Projects 28 Fully EN14 Biodiversity and Environmental Development Projects 28 Partially EN18 Climate Change and Emission Management 23, 24 Fully EN20 Protecting the Quality of the Air 24 Partially EN21 Waste Water Disposal 26 Fully EN22 Efficiency at Koç 26 Partially Koç Group Recycling Project 26 Disposal methods are determined depending on waste management regulations, directives and implemented environmental management standards of government agencies and the category and type of waste. EN26 Environmentally Friendly Products at Koç 29-30 Fully EN30 Environmental Management and Investment 23 Fully Expenditures LA1 Work Environment at Koç 14 As the report covers Koç Group activities and projects carried out only in Turkey no Fully regional breakdown is cited. LA4 Labor Union Rights at Koç 13 Fully LA5 Minimum Notice Periods 15 Fully LA6 Occupational Health and Safety at Koç 11 Fully LA8 Occupational Health and Safety at Koç 10-12 Fully LA9 Occupational Health and Safety at Koç 10-12 Partially LA10 Koç Academy and Training in Our Companies 15 In 2011, Average training hours were 26.66 hours for blue collar employees and 53.02 Fully hours for white collar employees. LA11 Koç Academy and Training in Our Companies 11 Fully Minimum Notice Periods 15 Leader Development Programs 17 Koç Holding Retirement Pension Foundation 18 LA12 Koç Group Compensation System 15-16 Fully LA14 Koç Group Compensation System 15 Any personal property of employees can not be the reason of different treatment, like all Fully processes of Koç Group companies, in remuneration process. For this reason, as long as they perform the same job, all Group employees are paid equal wages. Equality of women and men wages may vary only in seniority status, overtime, performance bonus and similar payment cases. HR2 Business Ethics in the Supply Chain 32 Fully HR4 - - During the reporting period, one of our Group Companies, Tüpraş, has received one Fully discrimination claim from a visitor regarding the restriction of her entrance to the refinery area. As a result of investigations conducted regarding to this claim, it has been found that visitor's entrance to the refinery area was restricted due to health and safety measures that Tupras strictly follow, but not to any discriminatory action. Necessary information has been provided to interested parties. HR5 Labor Union Rights at Koç 13 Fully HR6 Human Rights at Koç 10 Fully HR7 Human Rights at Koç 10 Fully SO1 Operational Entry and Decommissioning Practices 26 Partially SO2 Ethical Values at Koç 32-33 Partially SO3 Ethical Values at Koç 32-33 Partially SO4 Ethical Values at Koç 32-33 Partially SO6 Ethical Values at Koç 32 Relevant contribution to political parties, politicians and related institutions is zero. Fully PR3 Ethical Values at Koç 33 Fully PR5 Our Stakeholders 8, 9 Fully PR6 Responsible Advertising and Marketing 33 Fully GRI Index 46 Disclaimer This Report is prepared for information All information contained in this Report and purposes only and it is not intended to form associated documents were believed to be This Report has been prepared by Koç the basis of any investment decision. It does accurate for the time period it covers, Holding A.Ş. (“Koç” or “Koç Holding” or “Koç not constitute or form part of an offer to sell expressed in good faith and based on Group”) in the context of United Nations or issue, or a solicitation of an offer to sources believed to be reliable. However, Global Compact Initiative which Koç purchase or subscribe for, any securities or this does not constitute a representation, adhered to on March 30, 2006. other interests in the Koç Group and no guarantee, warranty or undertaking of any All information and opinions contained in legal relations shall be created by its issue. nature on Koç Group. this Report which does not purport to be Accordingly, none of Koç Group or their comprehensive, have been provided to by respective advisors, directors or employees Koç Group and have not been shall be liable for any direct, indirect or independently verified for this purposes. consequential loss or damage suffered by any person as a results of relying on any statement in or omission from this Report or in any other information or communications in connection with the Report.
Contact
For Further Information Oya Ünlü Kızıl Koç Holding Director of Corporate Communications and External Affairs
Koç Holding A.Ş. Nakkaştepe Azizbey Sok. No:1 Kuzguncuk 34674 İstanbul T: +90 (216) 531 02 87 F: +90 (216) 343 15 37 [email protected]
Consultant Kıymet-i Harbiye [email protected] www.koc.com.tr
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