Ceyda Aydede

February 2006

Is CSR a Modern Robin Hood Philosophy?

Is it a trend?

“CSR”comes from the idea of the wealthy and the leaders of a community giving back to society, protecting and supporting while gaining credibility.

Exists in all religions and societies since early times

Is more than a sponsorship or charitable donations (philanthropy)

It is a voluntary continuing commitment of businesses to behave ethically and contribute to economic development according to societies changing expectations and needs of differentiating themselves.

Success of CSR

Social Reponsibility projects must be in confirmity with corporate identity, corporate culture and business values. Otherwise, efforts will have no positive effect on reputation.

Social responsibility projects are not sponsorship programmes or marketing activities. Success of the project depends on the voluntary support of employees which is important as much as the financial support.

Effectiveness of publicizing activites are decreasing because of the marketing pollution. This causes corporations to use CSR as a tool for their differenciating needs.

Conformitywith the corporate identity

Sustainability

Success of CSR

Success of CSR projects is related with the;

Creativity

An important Tool for Reputation

Reputation can be obtained by establishing good and right relations with your stakeholders.

Reputation index of a corporation is the mixture of the following criteria;

products or services11

financial performance22

vision and leadership33

Conclusion44 working environment

social responsibilities55

and also how much your corporation is respected.66

Important Steps of a CSR Project

Before the project

Research and Plan

Create an appropriate, realistic strategy

Decide on a sustainable plan of action and activity

During the project

Develop Dialogue & Communicate with stakeholders

After the project

Publicize the project both internally and externally

Measure & Evaluate the success of the project

Report

Communication of Social Responsibility Projects

A Research executed by GfK Turkey in 2004 shows that % 74,5 of 1335 people agree corporations to explain their social responsibility activities through media channels.

Question: What do you generally think about the corporations explaining their social responsibility activities through media channels such as television, radio, newspapers, etc.?

Right74,5 %

Wrong 25,5 %

Typical CSR Programmes

Areas of CSR Programmes are;

Education (new schools, scholorships)

Health (new hospitals, outreach treatments)

Community (recreational, social)

Environmental (recycling, new energies)

Why CSR has to be Measured?

The impact of CSR has to be measured;

In order to decide about the right project which will best fit with the corporate identity and have an influence on stakeholders’ relations

In order to have information about to what extend corporate reputation is influenced by CSR activities

In order to measure the benefit gained by the society and the corporation itself according to the money spent on CSR projects (win-win)

Worldwide practices used for the measurement of CSR

Generally,5 types of evaluation methods are used;

Disclosure measurement11

CSR indexes and models (Globescan –CSR Monitor,

The Corporate Citizenship, CSR Scorecard, etc.)22

Social audits and observation of concrete CSR processes33

Conclusion44 Evaluation of CSR principles and values within the corporate culture

Conclusion55 Global Evaluation Platforms (Global Compact / RCI)

CSR Measurement on country basis

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

1 FINLAND 15 FRANCE 29 HONG KONG 43 BOLIVIA

2 SWITZERLAND 16 CANADA 30 CHILE 44 TURKEY

3 SWEDEN 17 PANAMA 31 PERU 45 BANGLADESH

4 NORWAY 18 COSTA RICA 32 SOUTH AFRICA 46 GUATEMALA

5 DENMARK 19 ISRAEL 33 MEXICO 47 CHINA PEOPLE’S REP.

6 NETHERLANDS 20 ITALY 34 BRASIL 48 ROMANIA

7 UK 21 PORTUGAL 35 INDIA 49 NIGERIA

8 NEW ZEALAND 22 JAPAN 36 COLOMBIA 50 RUSSIAN FED.

9 AUSTRIA 23 USA 37 MOROCCO 51 INDONESIA

10 AUSTRALIA 24 MALAYSIA 38 ARGENTINA

11 BELGIUM 25 THAILAND 39 CZECH REP

12 GERMANY 26 SINGAPORE 40 POLAND

13 SPAIN 27 GREECE 41 KOREA

14 IRELAND 28 TAIWAN 42 VIETNAM

Lithuania

“As a leading Lithuanian bank,we are glad to be able to give funds to projects that might

change fundementally or influnce the lives of certain social strata,and to bring about a qualatative change in their thinking or living.

In the implementation of charity and public projects, we give priority to long-term projects rather than one-off contributions.We take every opportunity to develope and deepen contacts with the receipients,to make the support even more efficient.

We are expanding our areas of support,and are moving forward as charity providers and active members of society”

Gintaras Liubinas, Communication Director of SEBVilniaus Bankas

Lituania in the World, No 6,2005

Corporate Social Reponsibility

GWA Winner -2004

SAFFRON

Yapi Kredi Pension Fund-Tema (NGO)

Turkey

CSR Project

SAFFRON Project

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

SAFFRON Project - Objectives

Objectives of the project were, to;

Implement transition from high volume – low earning crops – Cotton – to a low volume high revenue product – Saffron

Increase income and employment opportunities in the region

Provide training for the farmers to grow Saffron which is vanishing

Position the company as a caring member of the society

SAFFRON Project - Research

Research by the university on Saffron identified that:

There is an established international market and domestic demand due to usage in pharmaceutical, nutrition, cosmetics and textile colouring

World saffron production in 2002 was 210 tons worth US $ 86.8 m

Harvesting is labour intensive, suitable to a family farming environment

SAFFRON Project - Research

People and Culture:

Harran Plateau was home to different civilisations, empires and cultures from Hittites to the Ottomans.

The area is inhabited by Turkish, Arab and Kurdish people

The village (Çütlük) is made of 8 families (approximately 110 persons)

SAFFRON Project - Research

Economic Impact:

Total farming area is 1,600,000 sqm.

In 2003, 400 tons of cotton from 1,000,000 sqm. And 300 tons of wheat from 600,00 sqm. are produced

Total annual income was approximately US$ 220,000 from cotton and approximately US$ 80,000 from wheat

GNP US$ 650 per person

SAFFRON Project - Planning

Steps:

Establish a partnership between YKPF / Çütlük Village / Harran University / TEMA

Select a non commercial media plan for communication

Inform government via TEMA

Present project information and development via websites of University, TEMA and the company

SAFFRON Project - Planning

Detailed statement of objectives:

Establish the project to improve social, economic, employment and educational opportunities in the village

Create a training programme for the community

Attract buyers for the crop

Inform and achieve support from other audiences fro the project

Communicate with the media / staff / public / Government

Be recognised as a leading long term investor and caring member of society

SAFFRON Project - Planning

Communication channels:

TEMA and University meet landowner / farmers face to face

TEMA meet with National and Regional Government to present project proposals and reports to inform on progress and achievements

YKPF used media, internet and intranet and staff newsletter

Communication Vehicles:

Cartoon illustrations of the process and the story of Saffron

Classes for the community

Powerpoint presentations were used for the training programme

Media Contacts were briefed by YKPF

Personalised media invitations were written by YKPF’s CEO. Media pack included.

YKPF’s website and intranet carried information on the project

SAFFRON Project - Planning

Primary audiences and messages were:

Community of Çötlük and the landowner

Saffron will increase your income

Plant this crop for a new and improved future

Create a successful case for the rest of Turkey

TEMA / University / National&Regional Government Departments

Immediate economic gains; reduce imports / soil erosion; in line with national, regional and local economic development strategies

Co-operation between the partners – A pilot for societal change in the farming sectors across Turkey

Media / Public / Staff / other Stakeholders

“YKPF is a company that cares about you and your future”

SAFFRON Project - Evaluation

Outcomes:

Improvement of social, economic, employment and educational opportunities

The first Saffron flowers were harvested in October 2004

Plantation area will be increased to 6000 sqm in 2005

Landowner increased farmers share of income to 50 % from 30 %

TEMA uses the project as a case study across Turkey

Education

Crop management training is ongoing

Interest of buyers for the crop

Main Turkish spice retailers purchased the crop

SAFFRON Project - Evaluation

Media / staff / public /Government immediately after the launch programme YKPF achieved articles in 4 major national newspapers, 4 business,

environmental and lifestyle magazines, radio & television coverage of 43 minutes

Future corporate materials will feature the project

TEMA & Harran University demonsrated the positive values to Government departments and other farming communities

The project was welcomed by the Government and used as an example of progress and change across country

Recognition of the company as a Corporate and responsible member of society

Media coverage positioned YKPF as a respected member of the business community, demonstrating acceptance of its responsibilities through action

YKPF’s support of the project, provision of medical care and communication within the project community is established

Corporate Social Reponsibility

Gluten Free Flour

IHE(Istanbul Halk Ekmek / Bakery owned

and operated by the Metropilitan Municipality of Istanbul)

Turkey

CSR Project

Gluten Free Flour Project

This project outlines healthy product producing (gluten

free bread and gluten free flour) by IHE (Bakery owned

and operated by the Metropilitan Municipality of Istanbul)

Istanbul University Medicine Faculty to the benefit of a

group of patients who suffer from celiac, autism and

phenylketonuria illnesses and are unable to eat normal

flour based products.

Gluten Free Flour Project - Research

Research by the Istanbul University Medicine Faculty in Istanbul, Hacettepe University in Ankara, BERLİN University in Germany identified the key points needed to be addressed:

Celiac and Phenylketonuria diseases occur because of genetic and environmental factors

Sufferers of celiac, phenylketonuria autism – must consume gluten free products only

These diseases occur at every age group but mostly common among children

Side effects include mental retardation and other metabolic diseases

Gluten Free Flour Project – Research Cont’d

Families isolate their children from other families – embarrassment

With an estimated figure of 20.000+ sufferer’ this figure is higher in Turkey when compared to Europe

Patients can not eat chocolate / cakes or hamburgers from stores

Knowledge of symptoms outside the main urban areas was limited

It is necessary to supply & distribute gluten free flour to enable sufferers living out of Istanbul bake their own bread.

Gluten Free Flour Project - Planning

Objectives of the project were to;

Identify and communicate specific messages to each public

Position IHE as a caring company

Create awareness about the diseases and its symptoms across the country

Offer a solution to improve lifestyle by providing the product

Assist the sufferers of the diseases

Create a federation of all ineterested parties – internal and external- through which the Health Ministry and Medical Schools would start clinical research on the issue

Gluten Free Flour Project - Planning

Communication channels were:

Internal (Posters, Brochures, Notice Board, E-mail,communication with employees within the organization who are also sufferer of one of these diseases)

External (Help-line, Web-site, TV documentary, special event – gluten free chocolate distribution at PKU Association, Posters, Brochures, Direct mail, advertisin campaign – outdoor, printed media)

Communication vehicles were:

Press releases

Press conference

Magazine articles

Special interviews – newspapers & TV Channels)

Gluten Free Flour Project - Planning

Primary audiences and messages were: Celiac and PKU autism sufferers and their families

You are not alone –there are other families use our free helpline We can help you – ask for gluten free products and learn how to get them You can help yourself – join one of the associations You are a part of a special family Our products are much cheaper than imported ones You can buy flour and bake your own luten free cakes, breads, buns, etc. at home

Health Authorities / Doctors You can recommend IHE’s luten free products to your patients

Government Be aware of these dieseases Act responsibly Commit funds to clinical research IHE serves Turkish Economy because imported products are too expensive

Gluten Free Flour Project - Planning

Bread Manufacturers

Manufacturers have to act responsibly and supply healthy products for consumers

Media

IHE supplies luten free products for Celiac, autism and PKU sufferers

General Public

Be aware of the symptoms

Be aware of the diseases

IHE is a caring company which supplies healthy products for consumers

Association of PKU celiac sufferers

Associations should form a federation which will co-operate with medical schools to persuade Ministry of Health to start a clinical research on the issue.

Gluten Free Flour Project - Evaluation

Outcomes:

Number of phone calls to help line increased. 3800 addresses have been received in a week.

190 e-mails and telephone calls are being received on a daily basis.

Awareness of the desease increased and people started to identify their own symptoms.

IHE started to create a data through a help line.

IHE’s gluten free products were also mentioned in health portals (Q&A)

Four related NGO’s in Istanbul are establishing a federation

Request for bread and flour has increased. Sufferers started to give order from phone line and pick up their food from the closest IHE kiosk on the following day.

Wide media coverage achieved

THANK YOU