A MULTI-DIMENSIONAL, BIG PICTURE OF CSR: TOP 50 COMPANIES IN TURKEY by SARP BAĞCAN

A MULTI-DIMENSIONAL, BIG PICTURE OF CSR:

TOP 50 COMPANIES IN TURKEY

 

Assistant Professor SARP BAĞCAN

Lecturer in GelişimUniversity, Istanbul-TURKEY

Faculty of Economics, Administrative and Social Sciences

Department of Public Relations and Publicity,

E- mail: bagcansarp@gmail.com

 

Key words: Corporate social responsibility (CSR), CSR campaigns, sponsorship, benevolence, NGOs., CSR agenda


ABSTRACT

In the globalization process witnessed during the 21st century, concepts of corporate social responsibility (CSR) and corporate citizenship have gained increased importance on international platform of economy-politics. A new era in which corporations aim to maintain good relations with existing social structure, environment and world and establish interaction with these bodies has started and the effects of these interactions on social change are now observable more than ever. It is once again in this period that sustainability and CSR concepts gain further meaning. CSR leaves effect on social transformation with activities like benevolence, sponsorship and campaigns and the subjects such as education, health, culture-art, sports, environment, social entrepreneurism. In present research top 50 companies in Turkey have been analyzed within the context of CSR. It has been attempted to draw a big, dynamic picture of the CSR approach in Turkey. The big picture involves “structural picture” in which structure of companies as the subject of CSR and “contextual-operational picture” in which organizations that can potentially affect social change in Turkey are detected and projections are made/can be made to predict the future. In this process certain methods have been developed to detect the current status of CSR in the research and make projections for future. In the development of these new methods, novel criteria and definitions have been demanded and new terms such as  long-termed CSR activities, spontaneous-fixed CSR activities and continuous-fixed CSR activities have been generated. At the end of this research it has been detected that Turkey is a close observer of global CSR trends but the process is still blurred in terms of approach and activity. Despite that negation it is still reasonable to argue that Turkey has finally reached a certain position in CSR and bears the potential to develop even further.

1. Introduction

 

The natural outcomes of the 21st century shaped with technological advancements; boosted manufacturing and consumption; heightened awareness on citizenship and consumer rights having climbed during the 20th century; increased social organization via internet and social networks and elevated reactance; novel post-modern social structure in which individuals are free to contact with the rest of the world instantaneously have all together introduced the inevitable application of new approaches and practices within the fields of business world as well as public relations.

 

Redefined within the framework of this historical process social responsibility concept in business world has also received a new meaning known as corporate social responsibility which is more tangible. Now that every single organization is a corporate citizen and a corporate subject within the society. Just as is the case for each “citizen”, organizations themselves have certain social responsibilities which can be, as argued by Carroll (1991), widely discussed under the headings listed as economical, legal, ethical and volunteering/benevolence.

 

Presently, with the European Union GreenPaper (http://www.iisd.org/business/issues/eu_green_paper.aspx) agreement affiliated to United Nation Global Compact (www.unglobalcompact.com) the idea of social responsibility has been placed into a macro economical-political framework. Within the scope of this economical-political framework, the programs such as United Nations Environment Program (UNEP, http://www.unep.org/) and OECD International Investments and Guidelines for Multinational Enterprises (OECD Guidelines for Multinational Enterprises, (http://www.oecd.org/investment/mne/38111419.pdf) helped to turn the countries into an international agenda for modern-day business world. Caux Principles (CRT (http://www.cauxroundtable.org/index.cfm?&menuid=110) have underlined the necessity of all shareholders to contribute towards social responsibility; redefined companies’ current business-practice styles within the concept of sustainability and social-environmental responsibilities while the Global Sullivan Principles (http://www.sustainabilitydictionary.com/the-global-sullivan-principles-gsp/) have, by and large, adopted the key principles to secure human rights, elimination of discrimination and prevalence of social justice. As the implementer of all the principles listed above and a subject of social life, Global Corporate Citizenship Declaration has been shared in year 2001 with the general public in Davos; corporate citizenship concept has been clearly defined within a joint international framework which underpinned the obligation of business world to get involved with environmental and social issues (Schwab 2008).

Echoing the global initiatives, the earliest conference in Turkey on the issue of corporate social responsibility has been held in 2001 in Istanbul by TESEV-Turkish Economic and Social Studies Foundation (http://www.kssd.org/wp-content/uploads/2013/04/10yilonce10yilsonra.pdf). Aside from international organizations such as United Nations, there are a number of establishments like Koç Holding, Eczacıbaşı, Doğuş, Akfen, Borusan, Kocaeli Chamber of Commerce, İMKB; foundations and associations like KalDer, TEDMER, TEGV, TED;  Beşiktaş and Nilüfer Municipalities; Sabancı University and Açık Radyo which are collectively in close cooperation with Turkish government in order to share Turkey leg of social responsibility(http://www.capital.com.tr/dunya-vatandasligi-ve-kuresel-ilkeler-sozlesmesi-haberler/19818.aspx ). All these connections prove the fact that parallel to the global trends, corporate social responsibility is on the rise in Turkey as well and there is an authentic subsystem which can also be jointed with the rest of the world.

2. Purpose, Scope and Method of the Research; Data and Limitations

In present research top 50 companies in Turkey have been determined and corporate social responsibility approaches of the corporations; their links with nongovernmental organizations (NGO) have been elaborated and it has been sought if they organize any social volunteering activities. The purpose is, within the scope of focused subjects, drawing a multidimensional and macro-level picture of social responsibility in Turkey and within this framework, analyzing social responsibility approaches of different institutions on sector base via positing a general and comparative approach amongst sectors. The facts on which present research provides detailed information on nongovernmental social organizations, social volunteering and corporate social responsibility support the multidimensional character of responsibility concept. This research also provides a substructure in order to draw a general framework on the most recent status of corporate social responsibility approach in Turkey. This framework enables us to catch a glimpse of not only an instantaneous shot of the country but a wider lens to help us making future-oriented predictions and projections. On that account, current research bears significance for the applicable academicians and business world. Nonetheless the main limitation of current research is that, driven from the motto that reality can never ever be covered thoroughly, it has no claim to represent a complete or flawless picture of reality; instead this research is an attempt to draw a much larger and multidimensional picture of facts.

 

To serve the purpose of this research, Fortune 500 Turkey -2012- list released in year 2013 issue of Fortune magazine, one of the most reputed global business world publications, has been utilized. The list also contains some of the most acclaimed private and public corporations in Turkey. The selected top 50 companies, with their quantity and size, represent 10% within Fortune 500 list, which is a significant ratio.

 

In Fortune 500 Turkey -2012- list released in year 2013 issue of Fortune magazine, top companies of year 2012 are listed. Overall annual performance of any company is detailed on the upcoming year. Year-2013 data of companies shall be communicated with the public towards the ends of year 2014. All in all, data employed in this study are based on current and publicized information.

In our study, detailed information has been retrieved from corporate websites of top 50 companies to compile social responsibility practices. The research has only covered social utility-providing CSR campaigns of corporations, sponsorship and benevolence – volunteering applications have been taken as the basis of social responsibilities. Direct trade campaigns and activities of the corporations have been excluded. Data have been analyzed in depth under the titles CSR practices, interaction with NGOs and social volunteering; since the number of scanned pages is extensive internet site references are generally indicated as main pages of corporate websites. Data level obtained through scanning own websites of corporations is also important since they represent social responsibility awareness of corporations.

3. Structuring CSR General Picture of Turkey: Structural Picture

The main data are referenced to the classification of companies with respect to economical structure. This type of classification divides the companies into three key groups as production companies, trade companies and service companies. Production companies encompass good-manufacturing companies whereas trade companies are mostly the type of enterprises dealing with wholesale or retail sale of commercial goods. Service companies on the other hand are the establishments directly dealing with service production and service marketing (Dalay 2002). In addition to this classification, our study shall also investigate the companies under subtitles of the three main groups listed above. Subtitles shall be private companies and public companies separated with respect to capital ownership. Private companies are the establishments of which the majority or complete body belong to the state or a state establishment while private companies are the establishments of which the majority or complete body belong to legal and natural persons (Dalay). In our research sectoral distinctions and descriptions are made on the basis of triple main classification and occasionally on the basis of private – public sector subtitles. Subsequent to these two main data providing a general framework campaigns, sponsorships and activities which are listed as topic titles under social responsibility concept drawn within the framework shall be put forth. Next, the analysis shall be processed.

Below is 2013-dated Fortune 500 Turkey -2012- list providing full names of top 50 companies (http://fortuneturkey.com/fortune500-2012/ ). In the following parts of research, abbreviated names of companies shall be mentioned. Based on the aforementioned economical structure, the companies are classified into three groups as below:

1-      Turkish Petroleum Refineries  (TÜPRAŞ – production company), 2 – OMV Petrol Office Inc. (OMV Petrol Office – trade company), 3 – Turkish Electricity Distribution Company (TEDAŞ – service company), 4 – Turkish Electricity Trade and Contracting Corporation (TETAŞ – trade company), 5 –Turkish Airlines (THY – service company), 6 – OPET Petrol Inc. (OPET Petrol– trade company), 7 – Turkish Electricity Generation Inc. (TEİAŞ – service company), 8 – Turkish Telecommunication Inc. (Türk Telekom – service company), 9 – Shell&Turcas Petrol Inc. (Shell&Turcas Petrol – trade company), 10 – Arçelik Inc .(Arçelik – production company), 11 – Turkcell Communication Services Inc. (Turkcell – service company), 12 – Electricity Generation Inc. (EÜAŞ – production company), 13 – ENKA Construction and Industry Inc. (ENKA – production company), 14 – BİM United Shops Inc. (BİM – trade company), 15 – Ford Automotive  Industry Inc. (Ford Otosan – production company), 16 –Ereğli Iron and Steel Plants (Ereğli Demir Çelik – production company), 17 – Vestel Electronics and Trade Inc. (Vestel Elektronik – production company), 18 – TOFAŞ Turkish Automobile Factory Inc. (TOFAŞ – production company), 19 – MİGROS Commerce Inc. (MİGROS – trade company), 20 – Anadolu EFES Brewery and Malt Industry Inc. (Anadolu EFES Biracılık – production company),  21 – JTI Tobacco Products Marketing Inc. (JTI Tütün Ürünleri Pazarlama – trade company), 22 – AYGAZ Inc. (AYGAZ – production company), 23 –Doğuş Automotive Service and Trade Inc. (Doğuş Otomotiv – service company), 24 – İÇDAŞ Steel Energy  Shipyard and Transportation Industry Inc. ( İÇDAŞ Çelik Enerji – production company), 25 – Selçuk Pharmacy Warehouse Trade and Industry Inc. (Selçuk Ecza – service company), 26 – ENERJİSA Energy Inc. (ENERJİSA – production company), 27 – PETKİM Petrochemistry Holding Inc. (PETKİM – production company), 28 –Coca Cola Drinks Inc. (Coca Cola – production company), 29 – Istanbul Gas Distribution Industry and Trade Inc. (İGDAŞ – service company), 30 – LC WAİKİKİ Retailing Services Trade Inc. (LC WAİKİKİ – trade company), 31 – Unilever Industry and Trade Turkish Inc. (Unilever – production company), 32 – BSH Domestic Appliances and Industry and Trade Inc. (BSH Ev Aletleri – production company), 33 – Turkish General Directorate of Coal Enterprise (Türkiye Kömür İşletmeleri – production company), 34 – Nadir Metal Refineries and Industry Trade Inc. (Nadir Metal – production company), 35 – Otokoç Automotive Trade and Industry Inc. (Otokoç – production company), 36 – GENPA Telecommunication and Communication Services Industry and Trade Inc. (GENPA Telekomünikasyon – service company), 37 – Turkish Sugar Factories (Türkiye Şeker Fabrikaları – production company), 38 – İÇ İçtaş Construction Trade and Industry Inc. (İçtaş İnşaat – production company), 39 – CARREFOURSA CARREFOUR SABANCI TRADE CENTER Inc. (Carrefour – trade company), 40 – TEKFEN Construction, Trade and Industry Inc. (TEKFEN İnşaat – production company) , 41 – İPRAGAZ Inc. (İPRAGAZ – production company), 42 – Türkiye Petroleum Inc. (Türkiye Petrolleri – production company), 43 – Sarkuysan Electrolytic Copper Industry and Trade Inc. (Sarkuysan – production company), 44 – ER ERBAKIR Electrolytic Copper Products Inc. (ER ERBAKIR – production company), 45 – Ülker Biscuit Industry Tic. Inc. (Ülker – production company), 46 – Teknosa Domestic and Foreign Trade Inc. (Teknosa – trade company), 47 – TescoKipa Mass Marketing Trade and Food Industry Inc. (TescoKipa – trade company), 48 – Gübre Factories Trade Inc. (GÜBRETAŞ – production company), 49 – KVK Technology Products and Trade Inc. (KVK Teknoloji Ürünleri – trade company), 50 – State Railway (TCDD – service company) .

 

With respect to classification of companies in terms of economical structure (triple classification), as top 50 Turkish companies are viewed, distribution of the quantities and ratios of company types within general framework are as illustrated below:

 

Table 1: Quantitative and Proportional Distribution of top 50 Turkish companies with respect to Economical Structure

 Nine out of total 50 companies had no Corporate Social Responsibility activity publicized on their company website. Of these nine companies, six are public enterprises and three are private companies. This finding has been illustrated as a table to grasp the general framework of common interest of companies towards Corporate Social Responsibility concept. In the table the companies are individually separated with respect to private and public sectors and within their own category they have been classified in terms of quantity and ratio with respect to the top 50 list/general list:

 

Table 2: On Sectoral Base, Quantitative and Proportional Distribution of top 50 companies with respect to their interest towards CSR Concept

As the table manifests company websites of public companies are, compared to private companies, significantly less interested towards CSR. As clearly demonstrated private sector companies are much further interested in CSR activities. The figures in this table indicate that CSR -interest in public companies is average while significantly high in private sector establishments.

As CSR activity statements on the company websites of top 50 companies are examined, the general interest of companies towards CSR is listed as percentage ratios below:

 

Table 3: Quantitative and Proportional Distribution of top 50 Turkish companies with respect to their interest towards CSR Concept

82% interest rate proves that, on a general scale, corporate social responsibility concept is widely adopted by the major companies in Turkey. It is also clear that the relevant process is now irrevocable and the concept has already been internalized. Nonetheless acquiring a general framework on the content of concept and practices and demonstrating the qualities detecting CSR system internally require a concurrent view towards different dimensions. This view shall be elaborated below.

4. The Subjects, System and Components of Corporate Social Responsibility in Turkey: Contextual and Operational Picture

In the previous part, general economical framework of corporate social responsibility has been drawn on corporate base and it has been witnessed that the level of awareness, interest and tendency towards corporate social responsibility in Turkey is significantly high. The concept has been adopted by the companies; however the question is how is it operated in minds and in practice? The key CSR activities; which subjects are focused on, what are the level of relations with NGOs that carry the campaigns to real life and the status of social volunteering are crucial questions to be solved in order to clearly identify the context and process. These are the key components that will simplify the identification of the system externally and as a process; hence they will be able to complete the internal part of general framework. Identifying the linkage between company and society as well as the relations between company and NGOs are also vital points in the socialization of CSR. General framework, context and process develop greatly on the basis of this linkage and gain dynamism.

CSR activities in Turkey have been followed basically on the levels of campaign, sponsorship and volunteering and campaign & sponsorship activities directly related to commercial body of the company have been excluded. Since majority of companies failed to provide an accurate data on the number and duration of social charity activities, it seems impossible in this section to reach the number and toll sum of general activities. Thereby, to the ends of providing a neater and safer basis for the research, a direct quantitative method shall not be utilized. Instead, the application shall be performed through the subjects of CSR activities. Quantifications shall also be continued on the basis of these subjects and own distributions. On the following pages quantifications provide data on activity subjects but they have no other role such as indicating the power or level of performed activity.

As mentioned earlier, CSR activities of companies have been scanned under the titles campaigns, sponsorships and volunteering. The titles have indisputably proved these subject subtitles: Education, Culture-Art, Environment, Health, Sports and Social Entrepreneurism which implies the attempts to motivate individuals towards work life and provides contribution to welfare production.

The table below illustrates the number of companies within top 50 and the focused subjects of social responsibility:

 

As pictured in the table, out of the total top 50 companies in Turkey, 39 companies are focused on education, 20 are on culture-art, 18 are on environment, 13 are on health, 12 are on sports and 10 are on social entrepreneurism. Education is, by far, the most frequently focused subject which supersedes its closest rival, Culture-Art, with its twice size. This finding is a clear indication of the social priorities on CSR and the attitude of company executives. The second and third ranking subjects (Culture-Art, Environment) are close to each other and follow the 35-40% band. Health and Sports subjects are also close to 25% band. As seen social entrepreneurism subject is also of interest to business world and close to 20% band but clearly it is not yet a popular trend.

An investigation on company websites put forth that particularly in public sector internet sites, THY is densely involved with CSR activities. İGDAŞ and TPAO are the followers of THY in the frequency of CSR activities. Next come TEİAŞ, GÜBRETAŞ and TCDD. Nonethelessthe website search of TEDAŞ, TETAŞ, EÜAŞ, which are all listed amongst top 50, provided no information on CSR activities. While THY was involved with environment, education, sports, social entrepreneurism subjects the other public sector companies provided contribution to education and environment, sports and culture–art subjects respectively; THY grabs attention as the leading company in public sector .

Identification of the focused-CSR subjects alone in Turkey cannot be adequate enough to inform us about the direction the subjects follow. On a broad scale, subjects have been detected on a general compilation from the titles named as campaigns, sponsorships and volunteering. In the cases of sponsorship and volunteering in particular, the activities are likely to be spontaneous and short- termed. On that account, identification of subjects only helps us in gaining an idea on the general framework and potential direction of CSR in Turkey alone and provides only a static picture. But in reality one of the key objectives of CSR is creating a social transformation within the scope of a key issue and value/values system. Focusing on the subjects alone is useless in grasping the whole operational dynamic of the process. This points to the fact that an analysis of a dynamic process is also needed. For that purpose in order to see more clearly to what extend companies contribute to social transformation -which is one of the key objectives of CSR- it is a must to focus on their long –termed campaigns and long –termed sponsorships. Long-termed campaigns and sponsorships, CSR campaigns in particular, bear potential to impact social transformation by virtue of their continuity characteristics at most. Below, long –termed CSR campaigns and sponsorships have been grouped under long –termed corporate responsibility activities heading; first these activities are numbered with respect to their activity subjects. Next it has been detected how many companies in sum performed how many long-termed CSR activity in which subject.

The objective is to designate the number of companies engaged with long-termed CSR activities and their ratio within top 50 companies. The first table below manifests these data:

As indicated in the table total 79 projects have been identified as long –termed CSR activities in Turkey. 29 companies are focused on education, 8 are on culture and art, 16 are on environment, 5 are on health, 12 are on sports and 9 are on social entrepreneurism. There are some visible divergences on certain points between total number of long-termed CSR activities and their ratio within top 50 companies as well as quantitative and proportional distribution of companies with respect to focused CSR subjects.

These divergences are clearly listed on the table below:

 

As seen above once discussed from the dimension of long –termed CSR activities huge slumps are witnessed in the numbers and ratios of companies with respect to subjects education, culture-art and health. Once benevolence or short –termed sponsorships are discarded, the current picture in Turkey is cleared even better. Benevolence and sponsorship (temporary, short-termed), due to their characteristics, leave a spontaneous and fixed impact with their existential limitations. Thus we are to describe such activities as spontaneous-fixed corporate social activity. Since they are extended to longer periods and temporarily fixed, we define long-termed sponsorships as continuous-fixed corporate social activity; definitions above have been formed on the basis of these criteria and emerging need to classify. Our paper shall employ these new activity definitions hereinafter.

The existence of spontaneous-fixed corporate social activities (benevolence and spontaneous-short termed sponsorships etc.) triggers a swell in the distribution of subjects but it indicates that whenever companies in Turkey are given an opportunity or decide to hold campaigns, the very first subjects they tend to choose are education, culture-art and health. This finding also underlines that in the upcoming years if companies in Turkey want to take an active position in CSR they shall most probably tend to initially select once again these subjects. As the table signifies these subjects are not only matters of interest to business world but equally important today and shall be so tomorrow for Turkish public in general as well.

As regards environment, sports and social entrepreneurism subjects the comparison drawn on the table points to a balance within the context of company numbers and ratios. This finding indicates that these subjects are seated on a certain position on the CSR agenda of Turkish business world. Nonetheless there is no solid evidence indicating that these subjects can overtake the potential of education, culture-art and health subjects which rank the first three.

Nongovernmental organizations and volunteering are one of the most strategic points in which CSR activities unite with society and in which social benefit and corporate message simultaneously socialize and spread. Voluntary participation of companies to social events is a vital factor driven from the corporate body itself and enhancing corporate motivation. In the table below it has been attempted to identify the existence or nonexistence of interrelations with volunteer activities.

Table 7: Existence or Nonexistence of Interrelations with Volunteer Activities

In the monitoring conducted within this scope, out of 50 companies, no NGO interrelation and volunteering data have been detected in 16 companies. In 8 companies no volunteering exists but interrelation with NGO has been found. This finding indicates spontaneous fixed corporate activities like school construction, support and donations. In 2 companies, no interrelation with NGO has been found whereas social volunteering has been determined, which point to the fact that CSR activity of the company is conducted directly and with no recourse.

On the other hand it has been detected that in certain cases there was no volunteering or NGO interrelation while benevolence activities were identified. This finding points out not an inactivity but rather self-regulation of CSR organization by the company itself.

5. Conclusion

In this research a comprehensive, multi-dimensional and dynamic picture of CSR approaches in Turkey has been drawn. Particular CSR picture is structured onto historical development process witnessed in Turkey’s recent history. It has been manifested that during recent history Turkey has closely monitored the global developments witnessed on the concepts of CSR and corporate citizenship. Key components of the big picture in this research are structural and contextual-operational pictures.

In the structural picture, corporate structures in Turkey and interest level towards CSR subjects have been examined. In the structural picture it has been detected that top 50 companies by a high ratio of 82% in Turkey engage in CSR activities. Public sector represented 50% ratio, public sector reflected quite a high ratio with 92.11% CSR activity level. In public sector no evident picture on CSR could be monitored. Structural picture presented us a general framework of CSR approach on corporate base and economy domain. The framework also revealed that there is a high level of awareness among Turkish business world and that CSR is now an internalized concept within Turkey. Despite that account, this is still a static picture after all.

The secondary key component of big picture is contextual-operational picture. In this picture CSR subjects in Turkey, corporations, activities and volunteering & NGO interrelations that socialize the corporations have been probed into. These components simplified the identification of big picture and system internally and as a whole process. In the relevant part CSR activity subjects of corporations have been focused on and CSR agenda in Turkey has been identified. Once CSR is analyzed generally within the contexts of benevolence, sponsorship and campaigns, it has been seen that in Turkey education subject is twice or four times greater compared to other subjects. Nonetheless this is only a general-static picture since in the evaluation part spontaneous and temporary activities such as benevolence and sponsorship activities (which are occasionally short termed) are included. On the other hand as acknowledged in international society as well, one of the key objectives of CSR is enabling a social transformation. In order to create this change, it is required to move beyond static picture and identify the direction and dynamics of CSR in the country. In relation to this context, long-termed corporate social activities (CSR campaigns and long termed sponsorships) have been focused on since projected social transformation itself also calls for a long process. In the end a diverse and cleaner picture has been obtained concerning this matter. While drawing this novel picture concerning social transformation, new criteria have been demanded in the collection process of excluded and selected data; these data defined as  long-termed CSR activities , spontaneous-fixed CSR activities and continuous-fixed CSR activities have been generated by the authors of present research. As seen, volunteering and NGO interrelations exhibited a prevalence. Within the scope of long-termed CSR activities total number of long-termed CSR activities in Turkey has been computed. As exhibited in Table 6 significant slumps have been detected in education, culture-art, health activities; environment, sports, social entrepreneurism however seemed to maintain their balance. In addition natural companies and actors impacting on social transformation on campaign base have emerged accordingly. This new classification (Table 6) provides vital insights to the academicians and Turkish & foreign businesspeople who want to visualize much realistically and clearly the contribution of CSR on social transformation. Distribution with respect to subjects (Table 4) on the other hand provides us a general picture. It also demonstrates that excluding real actors, it is potentially evident that context and agenda shall once more be mostly oriented towards the subjects of education, culture-art and health even if CSR activities get further concentrated in near future (when the data are fixed into Table 6). To wind up, despite the divergence of treated subjects in Turkey, there still exists a CRS system aiming to work in parallel with globe and this system is becoming further clearer and integrated each new day.


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