CSR Initiatives of Private Sector
Companies in Turkey: Main
Approaches, Issues and Motivations
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Abstract
Corporate social responsibility (CSR) has become one of the most important agenda for private enterprises in Turkey specifically in the last decades. The aim of this paper is to examine CSR initiatives (programs, activities and projects) of private sector companies in Turkey by focusing on main approaches, themes, motivations, stakeholder dialogue and engagement. Through this purpose, corporate web sites of 22 companies thoroughly investigated to seek information on CSR and 43 CSR projects are identified which still in practice at the time of this research conducted. Findings of the study revealed that private sector companies have some shortcomings to sustain multidimensionality in CSR conceptualizations and comprehensive approach in CSR initiatives.
Keywords: Corporate social responsibility (CSR), private enterprises, stakeholder dialogue, public relations, Turkey 7UNL\H·GHNLg]HO6HNW|UúüOHWPHOHULQ.66úQLVL\DWLIOHUL 7HPHO<DNODü×PODU .RQXODUYH0RWLYDV\RQODU Özet .XUXPVDOVRV\DOVRUXPOXOXN .66 VRQ\×OODUGD7UNL\H·GHNL|]HOVHNW|ULùOHWPHOHULQLQ|QHPOLELUJQGHPLQL ROXùWXUPDNWDG×U%XoDO×ùPD7UNL\H·GHNL|]HOVHNW|ULùOHWPHOHULQ.66SURJUDPODU×IDDOL\HWOHULYHSURMHOHUL HWUDI×QGD WDQ×PODQDQ .66 LQLVL\DWLIOHULQL DQOD\×ùODU NRQXODU PRWLYDV\RQODU SD\GDù GL\DORöX YH SD\GDù VRUXPOXOXöXoHUoHYHVLQGHDQDOL]HWPH\LDPDoODPDNWDG×U%XEDöODPGDLùOHWPHQLQNXUXPVDOZHEVD\IDODU× D\U×QW×O× RODUDN LQFHOHQPLù YH oDO×ùPDQ×Q \DS×OG×ö× WDULKWH KDOHQ X\JXODQPDNWD RODQ .66 SURMHVL EHOLUOHQPLùWLU÷QFHOHPHQLQEXOJXODU×|]HOVHNW|ULùOHWPHOHULQLQ.66X\JXODPDODU×QGDoRNER\XWOXOXöXLKPDO HWWLNOHULQL YH .66 LQVL\DWLIOHUL NRQXVXQGD EWQONO ELU DQOD\×ù JHOLùWLUPHNWH HNVLNOLNOHUL ROGXöXQX RUWD\D NR\PXùWXU
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Corporate social responsibility (CSR) concept has attracted vast attention among academics and business professionals after 1970’s and it has grown rapidly especially during the last decades. In the early years CSR was conceptualized in the frame of business related social problems and grounded on the idea that “business is an actor in the environment and should respond to social problems and demands” (Wood, 1991: 384). Starting from 1980’s attention has shifted to “how companies tended to respond to business related social issues (respon-siveness) as well as what was considered ethical behavior” (Clark, 2000: 366). Main reason behind recent interest in CSR has aroused from the development of globalization and international trade which have produced more business complexity and new demands from business side such as transparency and corporate citizenship (Jamali and Mirshak, 2007: 243). In today’s competitive business environment, private enterprises widely accepted the importance of CSR as a vital component of business philosophy and practices.
CSR can be defined as “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis” (Commission of the European Communities, 2001:6). European Commission puts forward a new definition of CSR as “the responsibil-ity of enterprises for their impacts on society”. According to this con-ceptualization, enterprises should integrate “social, environmental, ethical, human rights and consumer concerns into their business operations and core strategy in close cooperation with their stakehold-ers” (European Commission, 2011:6).
CSR Initiatives of Private Sector Companies in
Turkey: Main Approaches, Issues and
There are some obvious benefits for companies to engage in CSR. First of all, companies can build and develop more positive relation-ships with various stakeholders through CSR initiatives. They can enhance their legitimacy, ensure loyalty and differentiate themselves from their competitors, encourage employee loyalty and goodwill, attract investors and promote community goodwill (Portney, 2008: 263-265). Developing positive social responsibility image can contribute to the profitability of the company and help to achieve future goals. Besides, engagement with internal and external stakeholders through CSR provides important advantage to adapt to the changes in the mar-ket and also anticipate future transformations thus facilitates sustain-ability.
Although the concept of CSR extensively discussed in the litera-ture, implementation issues and perspectives differ from country to country (see Habisch et al., 2005; Ararat, 2006; Matten and Moon, 2007). According to Jones (1999), national socio-cultural environment and the level of national economic development are important variables influ-encing the perception of CSR. Besides stakeholders’ expectations may also vary in different country contexts. Borrowing concepts from Whitley (1999), Matten and Moon (2007: 407-408) argue that political system, financial system, education and labour system and cultural system frameworks which structure business systems can explain the CSR systems differences between the countries. Thus, it is important to conceptualize CSR in the frame of the contextual background. For instance, Ararat pointed out that there were significant differences
between American, European and Middle East and North Africa (MENA) contexts in CSR issues; Matten and Moon (2007) also illus-trate differences between CSR in the USA and Europe.
This paper attempts to uncover the CSR understanding and prac-tices of private sector companies in Turkey. Thus, CSR conceptualiza-tion in Turkey business context and private enterprises percepconceptualiza-tions’ on CSR will be discussed.
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Corporate web sites constitute the research unit of the analysis. Web sites are important medium for companies to communicate vari-ous stakeholders about their CSR initiatives thus convey valuable information concerning the CSR acts. The private sector companies involved in this study were selected from “Turkey’s Corporate Social responsibility Leaders” index which appears annually in CAPITAL Business and Economy Journal since 2005. CAPITAL Business and Economy Journal prepared latest 2012 public survey in cooperation with GFK Turkey and total 1.455 people over the age of 15 participated to the face to face interviews.
From latest 2012 rankings 19 Turkish private enterprises are selected and from the previous six years’ index three most listed Turkish private sector companies also added to the research sample. Total 22 companies’ CSR initiatives are covered in the study and cor-porate web sites are thoroughly investigated to seek information about CSR (see Table 1). In the frame of this study, CSR initiatives consist of projects, programs and activities of the companies.
Corporate web sites are examined in order to investigate the fol-lowing research questions (RQ):
RQ1: To what extend do companies give place to CSR initiatives in their web sites?
RQ 2: How many specific CSR projects that the companies still have in practice?
RQ 3: What are the main themes of the CSR projects? RQ 4: Which stakeholders are at the target of CSR projects? RQ 5: Which motivating principles are employed by companies in their selection of the CSR project issues?
RQ 6: Are there any research conducted to learn stakeholder expectations about CSR initiatives?
RQ 7: Is there any information about CSR initiatives apart from CSR projects?
RQ 8: To what extend the conceptualization of CSR initiatives of companies are coherent with CSR definitions in the literature?
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Total 20 companies included “social responsibility” to their corpo-rate web sites. Only one of these companies covered CSR under differ-ent heading “social activities”. These finding indicate that, CSR is considered as sufficiently important initiative to be worth mentioning in corporate main web page and important component of corporate communication practices for developing relationships with stakehold-ers and self-representation as socially responsible company to the public.
On the other hand, only eight company web sites convey compre-hensive information about CSR through including CSR principles and CSR reports. Rest of the companies only cover basic CSR concerns, approaches, projects and activities. This finding point out that most of the private enterprises still do not consider CSR as a part of their pub-lic accountability process. Thus, it can be inferred that CSR is more
align with corporate communication rather than being a part of busi-ness philosophy in Turkish busibusi-ness context.
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From 22 private sector companies, total 43 CSR projects were identified which still in practice at the time of this research conducted (see Table 2). Detailed explanations about the CSR projects were avail-able in corporate web sites in terms of project aims, focus, partners and scope. Some companies also gave place to their past CSR projects in their corporate web pages and mentioned the solid results and out-comes. On the corporate web sites, CSR heading mostly allocated for CSR projects and does not cover other CSR initiatives such as employ-ee rights or work ethics. Thus it can be inferred that, companies mostly conceptualize or realize their CSR practices in the form of pro-jects.
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Overall 43 CSR projects, only two CSR projects are related with internal stakeholders and aiming to value innovative and entrepre-neurship ideas of employees, subsidiaries and suppliers. There is a wide gap between target stakeholders of CSR projects which can be interpreted as a result of companies’ giving more emphasis to devel-oping positive relationships with external audiences.
41 of the CSR projects target external stakeholders and mostly community and customers. CSR external projects’ theme distribution is; 19 education, 6 environment, 4 culture-art, 4 employment, 2 tech-nology-innovation, 1 entrepreneurship, 1 sports, 1 domestic violence, 1 child development, 1 financial literacy, 1 disability (see Table 3).
Education is the prominent subject in examined CSR projects. Most of the education projects are regarded with disadvantaged social groups, similar to employment themed projects. Culture-art projects have also strong connections with educational processes. Half of the environmental projects belong to one specific company. Most of the
companies mention on their corporate web site that education, cul-ture-art and environment are their main interest in CSR initiatives. The reason behind these preferences is related with companies’ CSR moti-vations. However it is noteworthy that, according to Turkish legisla-tions companies may have some tax advantages in their donalegisla-tions to education. State’s tax encouragement of private enterprises can be interpreted as a significant drive to develop and/or contribute to CSR projects about education (UNDP, 2008:8).
Issues such as employee rights, investment in human resources, safety and health at work, product safety, human rights, social justice, democracy were not included in CSR projects themes. This finding should be highlighted as one of the most striking shortcoming of CSR projects in Turkish business context.
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As mentioned in corporate web sites, main motivations for CSR initiatives of private enterprises contributing to Turkey’s develop-ment, creating public value, development of life standard, resolution to public difficulties, seeking solution to the main developmental problems and contribution to the public welfare. Companies men-tioned on their web sites that most important criteria to develop and support CSR activities were the CSR targets’ relevancy with compa-nies’ establishment mission. These expectations were explicitly stated most of the corporate web sites and well defined relationship were linked up between missions and aim of the CSR projects.
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Cooperation with NGOs and public bodies are quite common in CSR projects. Private enterprises were giving financial and/or techni-cal support to governmental institutions’ projects, supporting NGOs practices and collaborating with NGOs in their CSR projects. Cooperation with universities and research institutions are also com-mon practices in companies’ CSR projects. In some macro CSR projects mostly lead by NGO’s and governmental institutions, companies develop partnerships and contribute together to these projects.
From 22 private companies, only five of them have voluntary groups consist of internal stakeholders. This finding indicates that including internal publics to the CSR initiatives were limited among private companies. On the other hand, cooperation with opinion lead-ers is common practice in CSR projects. Opinion leadlead-ers communicate wider publics about CSR projects’ aims and processes so that CSR messages can produce greater impacts.
In most cases, CSR projects’ leaderships were executed by CEOs or owner of the private enterprises. Private and personal leadership induces CSR initiatives in Turkey. According to CAPITAL Business and Economy Journal’s 2012 listing, CEOs and leaders supporting CSR projects about education, health, culture-art and societal problems are regarded as most socially responsible leaders.
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According to the CSR information on corporate web sites, only one company stated that they are monitoring media, utilizing internal correspondence, conducting perceptional surveys and collecting employee views besides sector research reports and customer satisfac-tion survey data to identify the issues to focus on CSR initiatives. Other companies mostly took for granted the expectations of stake-holders. CSR projects grounded on basic urgencies of society, suppose the main interest of stakeholders were meeting these needs.
CAPITAL Business and Economy Journal is an important source for the companies to uncover the main expectations of the external stakeholders. According to the results of the latest research of the jour-nal (CAPITAL, 2012), public demands from private companies to invest in and support CSR projects primarily about education (27,9%) and then health (20,9); environment protection (11,9%); domestic vio-lence, women and children rights (9,9%) and philanthropic issues (8,5%). Since the majority of the CSR projects are dealing with educa-tional issues, it can be inferred that projects mostly derived from stake-holders’ expectations and contribute more to the corporate reputation building.
Since most of the CSR initiatives focuses on external stakeholders, there were no data available to explore internal stakeholders’ expecta-tions from companies. This was another notable shortcoming in CSR initiatives.
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Apart from CSR projects, companies define philanthropic issues and sponsorships as a part of their CSR initiatives in their corporate web sites. Most favored CSR activities of the companies can be listed as follows:
3URILW VKDUH FRQWULEXWLRQV GRQDWLRQV EXUVDULHV DQG VFKRODU-ships, aids; (VWDEOLVKLQJVSRUWVLQVWLWXWLRQVDQGILQDQFLDOVXSSRUWVJLYHQWR sports clubs; 6FKRROKHDOWKFHQWHUOLEUDU\VWXGHQWDFFRPPRGDWLRQEXLOGLQJ constructions; &RPSOLPHQWDU\SURGXFWGLVWULEXWLRQIRUPHHWLQJSXEOLFQHHG 'RQDWLRQVWRPXVHXPVHGXFDWLRQDODQGUHVHDUFKLQVWLWXWLRQV
cultural activities (biennales, festivals, displays etc); 6XSSRUWLQJFXOWXUHSURGXFHUV
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When CSR activities concerned, it is apparent that companies mostly focus on philanthropic issues in their practices. This result indi-cated that initiatives excluding CSR projects were out of the general frame of CSR definitions (Birkmen, 2004 cited in Özturan, 2011: 5).
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From the examined CSR initiatives which appear on corporate web sites, it can be argued that most of the companies still consider CSR as a public relations practice and have some important
shortcom-ings to develop comprehensive view. Thus it is possible to define that most of these initiatives are instruments of corporate reputation man-agement and brand building practices. Particularly including philan-thropic activities and sponsorships to the frame of CSR; concentrating only on specific issues and stakeholders through neglecting some important ones, signal that conceptualization of CSR is far from grasp-ing multidimensional nature of CSR. Indeed, there is still lack of bal-anced multi-stakeholder perspective in CSR which is also apparent in the main tenets and themes of the practices. Nevertheless according to principles and guidelines presented European Commission (2011:7):
CSR at least covers human rights, labour and employment practices (such as training, diversity, gender equality and employee health and well-being), environmental issues (such as biodiversity, climate change, resource efficiency, lifecycle assessment and pollution prevention), and combating bribery and corruption. Community involvement and devel-opment, the integration of disabled persons, and consumer interests, including privacy, are also part of the CSR agenda. The promotion of social and environmental responsibility through supply-chain, and the disclosure of non-financial information, are recognised as important cross-cutting issues.
Actually when we consider the improvement in CSR, the develop-ments are very promising in Turkey. During the 1950s, CSR first initi-ated in the form of philanthropy and later companies have started establishing foundations (CAPITAL, 2012:80). It is observed that there were seven foundations belong to companies included to the sample. Today, CSR initiatives are transformed to larger programs and projects in which leaders or CEOs actively participated; NGO cooperation has become more prevalent and companies are getting more inclined to express their CSR concerns in terms of sustainability focused company strategies rather than CSR projects (CAPITAL, 2012: 80-82). Yet, compa-nies should pay more attention to distinguish public relations practices from CSR and put emphasis to implement CSR acts based on and foster stakeholder dialogue.
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Ararat, Melsa (2006). “Corporate Social Responsibility Across Middle East and North Africa.” http://research.sabanciuniv.edu/802/1/stvkaf07a66.pdf. Date of access: 15th February 2012.
CAPITAL Business and Economy Journal (2012). Türkiye’nin Kurumsal Sosyal Sorumluluk /LGHUOHUL$UDüW×UPDV×. Mart-2012: 72-89.
Clark, Cynthia E. (2000). “Differences Between Public Relations and Corporate Social Responsibility: An Analysis.” Public Relations Review 26(3): 363-380.
Commission of the European Communities (2001). “Promoting a European Framework for Corporate Social Responsibility.” http://eur-lex.europa.eu/LexUriServ/site/en/ com/2001/com2001_0366en01.pdf. Date of access: 15 February 2012.
European Commission (2011). “A Renewed EU Strategy 2011-2014 for Corporate Social Responsibility.” http://ec.europa.eu/enterprise/newsroom/cf/_getdocument.cfm?doc_ id=7010. Date of access: 15 February 2012.
Habisch, Andre; Jonker, Jan; Wegner, Martina and Schmidpeter, Rene (2005). Corporate Social Responsibility Across Europe. Berlin: Springer.
Jamali, Dima and Mirshak, Ramez (2007). “Corporate Social Responsibility (CSR): Theory and Practice in a Developing Country Context.” Journal of Business Ethics 72: 243-262.
Jones, Marc T. (1999). “The Institutional Determinants of Social Responsibility.” Journal of Business Ethics 20(2): 163-179.
Matten, Dirk and Moon, Jeremy (2008). “‘Implicit’ and ‘Explicit’ CSR: A conceptual framework for a comparative understanding of corporate social
responsibility.” Academy of Management Review 33(2): 404-424. g]WXUDQ3HUHQ ´.XUXPVDO6RV\DO6RUXPOXOXN9DND$QDOL]LdDO×üPDV×
7UNL\H·GHNLûLUNHWYH67.úQFHOHPHVLµ7h6(9http://www.step.org.tr/images/ UserFiles/File/KSS%20Vaka%20Analizi_P_Ozturan%20(2).pdf. Date of access: 15th February 2012.
Portney, Paul R. (2008). “The (Not So) New Corporate Social Responsibility: An Empirical Perspective.” Review of Environmental Economics and Policy 2(2): 261-275.
81'3 ´7UNL\H·GH.XUXPVDO6RV\DO6RUXPOXOXN'HùHUOHQGLUPH5DSRUXµ http://www.unglobalcompact.org/docs/networks_around_world_doc/ Network_material/CSR_Report_in_Turkish.pdf. Date of access: 15 February 2012.
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Wood, Donna J. (1991). “Social Issues in Management: Theory and Research in Corporate Social Performance.” Journal of Management 17: 383-406.
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Table 1. Private Sector Companies
1 6DEDQF×+ROGLQJ 12 %R\GDN+ROGLQJ
2 Turkcell 13 Avea
3 .Ro+ROGLQJ 14 Vestel
4 <×OG×]+ROGLQJ 15 'RöDQ+ROGLQJ
5 $UoHOLN$ø 16 Akbank
6 6DQNR+ROGLQJ 17 Efes Pilsen
7 Teknosa 18 *DUDQWL%DQN
8 Eti 19 Turk Telekom
9 Enka 20 %HNR
10 ÷ùEDQN 21 'RöXù*URXS
Table 2. CSR projects CSR Project Company 1 Snowdrops Turkcell 2 7XUNH\0RQH\%R[IRU9DQ Turkcell 3 %ULGJHRI+HDUWV Turkcell 4 6XSSRUWWRWKH<RXQJ%UDLQV Turkcell
5 Turkcell Power to Entrepreneur Turkcell
6 Employment Turkcell
7 7KH9RFDWLRQDO(GXFDWLRQ D&UXFLDO0DWWHUIRUWKH1DWLRQ .Ro+ROLGLQJ
8 For My Country .Ro+ROGLQJ
9 hONHU&KLOGUHQ·V&LQHPD)HVWLYDOV <×OG×]+ROGLQJ 10 6WDQGLQJ8QLWHGIRU(GXFDWLRQZLWK$UoHOLN$ø $UoHOLN$ø
11 Literacy Education 6DQNR+ROGLQJ
12 7HFKQRORJ\IRU+LVWRU\/LEUDU\RI5DUH:RUNV Teknosa 13 7HFKQRORJ\IRU:RPHQ Teknosa 14 (WL&KLOGUHQ·V7KHDWHU Eti 15 $GDSWDWLRQWR&OLPDWHIRU7XUNH\·V)XWXUHµ&DPSDLJQ Eti 16 7XUNH\·V7RPRUURZ3URMHFW Eti 17 .RQ\D%DVLQ0RGHUQ,UULJDWLRQ3URMHFW Eti 18 (7÷&KLOGUHQ·V)HUU\%RDW Eti 19 (7÷d(.h/&XOWXUDO$PEDVVDGRUV Eti
20 81 Forest in 81 City Project ÷ùEDQN
21 Chess ÷ùEDQN
22 ´6KRZ<RXU5HSRUW&DUG*HW<RXU%RRNµ&DPSDLJQ ÷ùEDQN
23 Firefly Mobile Education Unit ÷ùEDQN
24 .D\QDN7HNQLöL6XSRRUWV9RFDWLRQDO6FKRROV (F]DF×EDù×*URXS 25 &KLOGUHQRI7XUNH\6WDUVRIWKH:RUOG Avea
26 0\+RPHODQGLV$QDWROLD0\3URIHVVLRQLV7HFKQRORJ\ Avea
27 Earthquake Emergency Response Project Avea
28 Idea of My Life-Entrepreneurship for the Youth Project Avea
29 Avea Erzincan Call Center Avea
30 Avea Information Technology Classes Project Avea
31 :H3URGXFH:LWK2XU'LVDELOLWLHV3URMHFW Avea
32 Dad Send me to School Campaign 'RöDQ+ROGLQJ
33 End Domestic Violence 'RöDQ+ROGLQJ
34 ,GHDV3DYLQJ7KH:D\WR%XVLQHVV Akbank
36 Sea Stars Project *DUDQWL%DQN
37 Teacher Academy Foundation *DUDQWL%DQN
38 %RRNVRQWKH3KRQH3URMHFW Turk Telekom
39 %LOOLQJ)RUHVWV Turk Telekom
40 ,QWHUQHW+RXVHV Turk Telekom
41 'RöXù.LG 'RöXù*URXS
42 Stationary Sport Campaign 'RöXù*URXS
Table 3. CSR themes
Education Sea Stars Project
Education 7HDFKHU·V$FDGHP\)RXQGDWLRQ
Education Chess
Education ´6KRZ<RXU5HSRUW&DUG*HW<RXU%RRNµ&DPSDLJQ Education Firefly Mobile Education Unit
Education Literacy Education
Education (7÷&KLOGUHQ·V)HUU\%RDW
Education .D\QDN7HNQLöL6XSRRUWV9RFDWLRQDO6FKRROV
Education ,QWHUQHW+RXVHV
Education 7HFKQRORJ\IRU:RPHQ
Education Dad Send me to School Campaign Education Avea Information Technology Classes Project Education Stationary Sport Campaign
Education Snowdrops Education 7XUNH\0RQH\%R[IRU9DQ Education %ULGJHRI+HDUWV Education 6XSSRUWWRWKH<RXQJ%UDLQV Education 7KH9RFDWLRQDO(GXFDWLRQ D&UXFLDO0DWWHUIRUWKH1DWLRQ Education 6WDQGLQJ8QLWHGIRU(GXFDWLRQZLWK$UoHOLN$ø Culture-art hONHU&KLOGUHQ·V&LQHPD)HVWLYDOV Culture-art 7HFKQRORJ\IRU+LVWRU\/LEUDU\RI5DUH:RUNV Culture-art (WL&KLOGUHQ·V7KHDWHU Culture-art (7÷d(.h/&XOWXUDO$PEDVVDGRUV Environment $GDSWDWLRQWR&OLPDWHIRU7XUNH\·V)XWXUHµ&DPSDLJQ Environment 7XUNH\·V7RPRUURZ3URMHFW Environment .RQ\D%DVLQ0RGHUQ,UULJDWLRQ3URMHFW Environment 81 Forest in 81 City Project
Environment 5HJLRQDO(QYLURQPHQWDO&HQWHU´%HIRUH7KH\'LVDSSHDUµ
Environment %LOOLQJ)RUHVWV
Technology-Innovation 0\+RPHODQGLV$QDWROLD0\3URIHVVLRQLV7HFKQRORJ\ Technology-Innovation Earthquake Emergency Response Project
Employment Employment
Employment Idea of My Life-Entrepreneurship for the Youth Project Employment Avea Erzincan Call Center
Employment :H3URGXFH:LWK2XU'LVDELOLWLHV3URMHFW Domestic violence End Domestic Violence
Disability %RRNVRQWKH3KRQH3URMHFW Child Development 'RöXù.LG
Financial Literacy Para Durumu
Sports &KLOGUHQRI7XUNH\6WDUVRIWKH:RUOG Entrepreneurship Turkcell Power to Entrepreneur Entrepreneurship (internal
stakeholders)
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General (for internal
